Correlation Between Cub Elecparts and Grape King
Can any of the company-specific risk be diversified away by investing in both Cub Elecparts and Grape King 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 Cub Elecparts and Grape King into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cub Elecparts and Grape King Bio, you can compare the effects of market volatilities on Cub Elecparts and Grape King 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 Cub Elecparts with a short position of Grape King. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cub Elecparts and Grape King.
Diversification Opportunities for Cub Elecparts and Grape King
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cub and Grape is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cub Elecparts and Grape King Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grape King Bio and Cub Elecparts 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 Cub Elecparts are associated (or correlated) with Grape King. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grape King Bio has no effect on the direction of Cub Elecparts i.e., Cub Elecparts and Grape King go up and down completely randomly.
Pair Corralation between Cub Elecparts and Grape King
Assuming the 90 days trading horizon Cub Elecparts is expected to under-perform the Grape King. In addition to that, Cub Elecparts is 1.48 times more volatile than Grape King Bio. It trades about -0.04 of its total potential returns per unit of risk. Grape King Bio is currently generating about 0.0 per unit of volatility. If you would invest 15,650 in Grape King Bio on September 2, 2024 and sell it today you would lose (150.00) from holding Grape King Bio or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cub Elecparts vs. Grape King Bio
Performance |
| Timeline |
| Cub Elecparts |
| Grape King Bio |
Cub Elecparts and Grape King Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cub Elecparts and Grape King
The main advantage of trading using opposite Cub Elecparts and Grape King positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cub Elecparts position performs unexpectedly, Grape King 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 Grape King will offset losses from the drop in Grape King's long position.| Cub Elecparts vs. Chaintech Technology Corp | Cub Elecparts vs. Avision | Cub Elecparts vs. Clevo Co | Cub Elecparts vs. Elitegroup Computer Systems |
| Grape King vs. Standard Foods Corp | Grape King vs. Eclat Textile Co | Grape King vs. Feng Tay Enterprises | Grape King vs. China Steel Chemical |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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