Correlation Between Sambo Corrugated and Organic Special
Can any of the company-specific risk be diversified away by investing in both Sambo Corrugated and Organic Special at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sambo Corrugated and Organic Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sambo Corrugated Board and Organic Special Pet, you can compare the effects of market volatilities on Sambo Corrugated and Organic Special and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sambo Corrugated with a short position of Organic Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sambo Corrugated and Organic Special.
Diversification Opportunities for Sambo Corrugated and Organic Special
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sambo and Organic is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sambo Corrugated Board and Organic Special Pet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Organic Special Pet and Sambo Corrugated is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sambo Corrugated Board are associated (or correlated) with Organic Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Organic Special Pet has no effect on the direction of Sambo Corrugated i.e., Sambo Corrugated and Organic Special go up and down completely randomly.
Pair Corralation between Sambo Corrugated and Organic Special
Assuming the 90 days trading horizon Sambo Corrugated Board is expected to generate 0.4 times more return on investment than Organic Special. However, Sambo Corrugated Board is 2.49 times less risky than Organic Special. It trades about -0.22 of its potential returns per unit of risk. Organic Special Pet is currently generating about -0.1 per unit of risk. If you would invest 891,000 in Sambo Corrugated Board on September 13, 2024 and sell it today you would lose (61,000) from holding Sambo Corrugated Board or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sambo Corrugated Board vs. Organic Special Pet
Performance |
| Timeline |
| Sambo Corrugated Board |
| Organic Special Pet |
Sambo Corrugated and Organic Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sambo Corrugated and Organic Special
The main advantage of trading using opposite Sambo Corrugated and Organic Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sambo Corrugated position performs unexpectedly, Organic Special can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Organic Special will offset losses from the drop in Organic Special's long position.| Sambo Corrugated vs. Netmarble Games Corp | Sambo Corrugated vs. Youngchang Chemical Co | Sambo Corrugated vs. Sung Bo Chemicals | Sambo Corrugated vs. ECSTELECOM Co |
| Organic Special vs. Samsung Electronics Co | Organic Special vs. Samsung Electronics Co | Organic Special vs. LG Energy Solution | Organic Special vs. SK Hynix |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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