Correlation Between Ablerex Electronics and Pontex Polyblend
Can any of the company-specific risk be diversified away by investing in both Ablerex Electronics and Pontex Polyblend 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 Ablerex Electronics and Pontex Polyblend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ablerex Electronics Co and Pontex Polyblend CoLtd, you can compare the effects of market volatilities on Ablerex Electronics and Pontex Polyblend 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 Ablerex Electronics with a short position of Pontex Polyblend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ablerex Electronics and Pontex Polyblend.
Diversification Opportunities for Ablerex Electronics and Pontex Polyblend
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ablerex and Pontex is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ablerex Electronics Co and Pontex Polyblend CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pontex Polyblend CoLtd and Ablerex Electronics 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 Ablerex Electronics Co are associated (or correlated) with Pontex Polyblend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pontex Polyblend CoLtd has no effect on the direction of Ablerex Electronics i.e., Ablerex Electronics and Pontex Polyblend go up and down completely randomly.
Pair Corralation between Ablerex Electronics and Pontex Polyblend
Assuming the 90 days trading horizon Ablerex Electronics Co is expected to under-perform the Pontex Polyblend. But the stock apears to be less risky and, when comparing its historical volatility, Ablerex Electronics Co is 1.62 times less risky than Pontex Polyblend. The stock trades about -0.27 of its potential returns per unit of risk. The Pontex Polyblend CoLtd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,170 in Pontex Polyblend CoLtd on October 12, 2024 and sell it today you would lose (20.00) from holding Pontex Polyblend CoLtd or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ablerex Electronics Co vs. Pontex Polyblend CoLtd
Performance |
| Timeline |
| Ablerex Electronics |
| Pontex Polyblend CoLtd |
Ablerex Electronics and Pontex Polyblend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ablerex Electronics and Pontex Polyblend
The main advantage of trading using opposite Ablerex Electronics and Pontex Polyblend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ablerex Electronics position performs unexpectedly, Pontex Polyblend 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 Pontex Polyblend will offset losses from the drop in Pontex Polyblend's long position.| Ablerex Electronics vs. ADLINK Technology | Ablerex Electronics vs. Tradetool Auto Co | Ablerex Electronics vs. U Media Communications | Ablerex Electronics vs. Posiflex Technology |
| Pontex Polyblend vs. Rafael Microelectronics | Pontex Polyblend vs. Tehmag Foods | Pontex Polyblend vs. Ablerex Electronics Co | Pontex Polyblend vs. Everlight Electronics Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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