Correlation Between Nable Communications and Sambo Corrugated
Can any of the company-specific risk be diversified away by investing in both Nable Communications 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 Nable Communications and Sambo Corrugated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nable Communications and Sambo Corrugated Board, you can compare the effects of market volatilities on Nable Communications 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 Nable Communications with a short position of Sambo Corrugated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nable Communications and Sambo Corrugated.
Diversification Opportunities for Nable Communications and Sambo Corrugated
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nable and Sambo is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nable Communications 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 Nable Communications 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 Nable Communications 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 Nable Communications i.e., Nable Communications and Sambo Corrugated go up and down completely randomly.
Pair Corralation between Nable Communications and Sambo Corrugated
Assuming the 90 days trading horizon Nable Communications is expected to under-perform the Sambo Corrugated. In addition to that, Nable Communications is 1.79 times more volatile than Sambo Corrugated Board. It trades about -0.08 of its total potential returns per unit of risk. Sambo Corrugated Board is currently generating about 0.03 per unit of volatility. If you would invest 807,000 in Sambo Corrugated Board on October 9, 2024 and sell it today you would earn a total of 3,000 from holding Sambo Corrugated Board or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nable Communications vs. Sambo Corrugated Board
Performance |
| Timeline |
| Nable Communications |
| Sambo Corrugated Board |
Nable Communications and Sambo Corrugated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nable Communications and Sambo Corrugated
The main advantage of trading using opposite Nable Communications and Sambo Corrugated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nable Communications 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.| Nable Communications vs. Daishin Information Communications | Nable Communications vs. Wonil Special Steel | Nable Communications vs. Han Kook Steel | Nable Communications vs. Fine Besteel Co |
| Sambo Corrugated vs. JYP Entertainment Corp | Sambo Corrugated vs. SM Entertainment Co | Sambo Corrugated vs. Dongbang Transport Logistics | Sambo Corrugated vs. Choil Aluminum |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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