Correlation Between ECSTELECOM and Sambo Corrugated
Can any of the company-specific risk be diversified away by investing in both ECSTELECOM and Sambo Corrugated 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 ECSTELECOM and Sambo Corrugated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECSTELECOM Co and Sambo Corrugated Board, you can compare the effects of market volatilities on ECSTELECOM and Sambo Corrugated 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 ECSTELECOM with a short position of Sambo Corrugated. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECSTELECOM and Sambo Corrugated.
Diversification Opportunities for ECSTELECOM and Sambo Corrugated
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ECSTELECOM and Sambo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ECSTELECOM Co and Sambo Corrugated Board in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sambo Corrugated Board and ECSTELECOM 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 ECSTELECOM Co are associated (or correlated) with Sambo Corrugated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sambo Corrugated Board has no effect on the direction of ECSTELECOM i.e., ECSTELECOM and Sambo Corrugated go up and down completely randomly.
Pair Corralation between ECSTELECOM and Sambo Corrugated
Assuming the 90 days trading horizon ECSTELECOM Co is expected to generate 2.25 times more return on investment than Sambo Corrugated. However, ECSTELECOM is 2.25 times more volatile than Sambo Corrugated Board. It trades about 0.15 of its potential returns per unit of risk. Sambo Corrugated Board is currently generating about 0.01 per unit of risk. If you would invest 286,500 in ECSTELECOM Co on October 7, 2024 and sell it today you would earn a total of 14,500 from holding ECSTELECOM Co or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECSTELECOM Co vs. Sambo Corrugated Board
Performance |
| Timeline |
| ECSTELECOM |
| Sambo Corrugated Board |
ECSTELECOM and Sambo Corrugated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECSTELECOM and Sambo Corrugated
The main advantage of trading using opposite ECSTELECOM and Sambo Corrugated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECSTELECOM position performs unexpectedly, Sambo Corrugated 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 Sambo Corrugated will offset losses from the drop in Sambo Corrugated's long position.| ECSTELECOM vs. Daishin Information Communications | ECSTELECOM vs. KT Submarine Telecom | ECSTELECOM vs. Shin Steel Co | ECSTELECOM vs. DONGKUK TED METAL |
| Sambo Corrugated vs. Innowireless Co | Sambo Corrugated vs. Tway Air Co | Sambo Corrugated vs. Jeju Air Co | Sambo Corrugated vs. Nable Communications |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |