Correlation Between Stic Investments and PC Direct
Can any of the company-specific risk be diversified away by investing in both Stic Investments and PC Direct 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 Stic Investments and PC Direct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and PC Direct, you can compare the effects of market volatilities on Stic Investments and PC Direct 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 Stic Investments with a short position of PC Direct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and PC Direct.
Diversification Opportunities for Stic Investments and PC Direct
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stic and 051380 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and PC Direct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PC Direct and Stic Investments 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 Stic Investments are associated (or correlated) with PC Direct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PC Direct has no effect on the direction of Stic Investments i.e., Stic Investments and PC Direct go up and down completely randomly.
Pair Corralation between Stic Investments and PC Direct
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.77 times more return on investment than PC Direct. However, Stic Investments is 1.31 times less risky than PC Direct. It trades about 0.13 of its potential returns per unit of risk. PC Direct is currently generating about -0.11 per unit of risk. If you would invest 809,000 in Stic Investments on September 5, 2024 and sell it today you would earn a total of 50,000 from holding Stic Investments or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. PC Direct
Performance |
| Timeline |
| Stic Investments |
| PC Direct |
Stic Investments and PC Direct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and PC Direct
The main advantage of trading using opposite Stic Investments and PC Direct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, PC Direct 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 PC Direct will offset losses from the drop in PC Direct's long position.| Stic Investments vs. DB Insurance Co | Stic Investments vs. Jinro Distillers Co | Stic Investments vs. Pureun Mutual Savings | Stic Investments vs. Koryo Credit Information |
| PC Direct vs. Stic Investments | PC Direct vs. AurosTechnology | PC Direct vs. Hanwha InvestmentSecurities Co | PC Direct vs. LB Investment |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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