Correlation Between Stic Investments and Macromill Embrain
Can any of the company-specific risk be diversified away by investing in both Stic Investments and Macromill Embrain 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 Macromill Embrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and Macromill Embrain Co, you can compare the effects of market volatilities on Stic Investments and Macromill Embrain 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 Macromill Embrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Macromill Embrain.
Diversification Opportunities for Stic Investments and Macromill Embrain
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stic and Macromill is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Macromill Embrain Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macromill Embrain 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 Macromill Embrain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macromill Embrain has no effect on the direction of Stic Investments i.e., Stic Investments and Macromill Embrain go up and down completely randomly.
Pair Corralation between Stic Investments and Macromill Embrain
Assuming the 90 days trading horizon Stic Investments is expected to generate 1.31 times more return on investment than Macromill Embrain. However, Stic Investments is 1.31 times more volatile than Macromill Embrain Co. It trades about 0.05 of its potential returns per unit of risk. Macromill Embrain Co is currently generating about -0.07 per unit of risk. If you would invest 645,444 in Stic Investments on September 12, 2024 and sell it today you would earn a total of 206,556 from holding Stic Investments or generate 32.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Stic Investments vs. Macromill Embrain Co
Performance |
| Timeline |
| Stic Investments |
| Macromill Embrain |
Stic Investments and Macromill Embrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and Macromill Embrain
The main advantage of trading using opposite Stic Investments and Macromill Embrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Macromill Embrain 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 Macromill Embrain will offset losses from the drop in Macromill Embrain's long position.| Stic Investments vs. Hanshin Construction Co | Stic Investments vs. Dongkuk Structures Construction | Stic Investments vs. Hyundai Engineering Construction | Stic Investments vs. Daiyang Metal Co |
| Macromill Embrain vs. Samsung Electronics Co | Macromill Embrain vs. Samsung Electronics Co | Macromill Embrain vs. LG Energy Solution | Macromill Embrain 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 CEOs Directory module to screen CEOs from public companies around the world.
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