Correlation Between International CSRC and Antec
Can any of the company-specific risk be diversified away by investing in both International CSRC and Antec 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 International CSRC and Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International CSRC Investment and Antec Inc, you can compare the effects of market volatilities on International CSRC and Antec 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 International CSRC with a short position of Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of International CSRC and Antec.
Diversification Opportunities for International CSRC and Antec
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Antec is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding International CSRC Investment and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc and International CSRC 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 International CSRC Investment are associated (or correlated) with Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of International CSRC i.e., International CSRC and Antec go up and down completely randomly.
Pair Corralation between International CSRC and Antec
Assuming the 90 days trading horizon International CSRC Investment is expected to generate 0.41 times more return on investment than Antec. However, International CSRC Investment is 2.41 times less risky than Antec. It trades about 0.02 of its potential returns per unit of risk. Antec Inc is currently generating about -0.62 per unit of risk. If you would invest 1,515 in International CSRC Investment on September 3, 2024 and sell it today you would earn a total of 5.00 from holding International CSRC Investment or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International CSRC Investment vs. Antec Inc
Performance |
| Timeline |
| International CSRC |
| Antec Inc |
International CSRC and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International CSRC and Antec
The main advantage of trading using opposite International CSRC and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International CSRC position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.The idea behind International CSRC Investment and Antec Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Antec vs. Ma Kuang Healthcare | Antec vs. Chander Electronics Corp | Antec vs. Taiwan Chinsan Electronic | Antec vs. Microelectronics Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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