Correlation Between PEPTONIC MEDICAL and Focus Home
Can any of the company-specific risk be diversified away by investing in both PEPTONIC MEDICAL and Focus Home 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 PEPTONIC MEDICAL and Focus Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEPTONIC MEDICAL and Focus Home Interactive, you can compare the effects of market volatilities on PEPTONIC MEDICAL and Focus Home 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 PEPTONIC MEDICAL with a short position of Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPTONIC MEDICAL and Focus Home.
Diversification Opportunities for PEPTONIC MEDICAL and Focus Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PEPTONIC and Focus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PEPTONIC MEDICAL and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive and PEPTONIC MEDICAL 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 PEPTONIC MEDICAL are associated (or correlated) with Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of PEPTONIC MEDICAL i.e., PEPTONIC MEDICAL and Focus Home go up and down completely randomly.
Pair Corralation between PEPTONIC MEDICAL and Focus Home
If you would invest 2,110 in Focus Home Interactive on October 30, 2024 and sell it today you would lose (10.00) from holding Focus Home Interactive or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PEPTONIC MEDICAL vs. Focus Home Interactive
Performance |
| Timeline |
| PEPTONIC MEDICAL |
| Focus Home Interactive |
PEPTONIC MEDICAL and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEPTONIC MEDICAL and Focus Home
The main advantage of trading using opposite PEPTONIC MEDICAL and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPTONIC MEDICAL position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's long position.| PEPTONIC MEDICAL vs. LIVZON PHARMAC GRP | PEPTONIC MEDICAL vs. CanSino Biologics | PEPTONIC MEDICAL vs. Superior Plus Corp | PEPTONIC MEDICAL vs. Origin Agritech |
| Focus Home vs. Hua Hong Semiconductor | Focus Home vs. SK TELECOM TDADR | Focus Home vs. Comba Telecom Systems | Focus Home vs. Charter 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |