Correlation Between Focus Home and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both Focus Home and SANOK RUBBER 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 Focus Home and SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Home Interactive and SANOK RUBBER ZY, you can compare the effects of market volatilities on Focus Home and SANOK RUBBER 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 Focus Home with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Home and SANOK RUBBER.
Diversification Opportunities for Focus Home and SANOK RUBBER
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Focus and SANOK is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Focus Home Interactive and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and Focus Home 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 Focus Home Interactive are associated (or correlated) with SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of Focus Home i.e., Focus Home and SANOK RUBBER go up and down completely randomly.
Pair Corralation between Focus Home and SANOK RUBBER
Assuming the 90 days horizon Focus Home Interactive is expected to generate 4.29 times more return on investment than SANOK RUBBER. However, Focus Home is 4.29 times more volatile than SANOK RUBBER ZY. It trades about 0.14 of its potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.25 per unit of risk. If you would invest 1,686 in Focus Home Interactive on September 22, 2024 and sell it today you would earn a total of 188.00 from holding Focus Home Interactive or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Home Interactive vs. SANOK RUBBER ZY
Performance |
| Timeline |
| Focus Home Interactive |
| SANOK RUBBER ZY |
Focus Home and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Home and SANOK RUBBER
The main advantage of trading using opposite Focus Home and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Home position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| Focus Home vs. Nintendo Co | Focus Home vs. Nintendo Co | Focus Home vs. Sea Limited | Focus Home vs. Electronic Arts |
| SANOK RUBBER vs. GFL ENVIRONM | SANOK RUBBER vs. Autohome ADR | SANOK RUBBER vs. Focus Home Interactive | SANOK RUBBER vs. Perma Fix Environmental Services |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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