Correlation Between BizLink Holding and Cub Elecparts
Can any of the company-specific risk be diversified away by investing in both BizLink Holding and Cub Elecparts 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 BizLink Holding and Cub Elecparts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BizLink Holding and Cub Elecparts, you can compare the effects of market volatilities on BizLink Holding and Cub Elecparts 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 BizLink Holding with a short position of Cub Elecparts. Check out your portfolio center. Please also check ongoing floating volatility patterns of BizLink Holding and Cub Elecparts.
Diversification Opportunities for BizLink Holding and Cub Elecparts
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BizLink and Cub is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BizLink Holding and Cub Elecparts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cub Elecparts and BizLink Holding 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 BizLink Holding are associated (or correlated) with Cub Elecparts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cub Elecparts has no effect on the direction of BizLink Holding i.e., BizLink Holding and Cub Elecparts go up and down completely randomly.
Pair Corralation between BizLink Holding and Cub Elecparts
Assuming the 90 days trading horizon BizLink Holding is expected to generate 1.46 times more return on investment than Cub Elecparts. However, BizLink Holding is 1.46 times more volatile than Cub Elecparts. It trades about 0.08 of its potential returns per unit of risk. Cub Elecparts is currently generating about -0.06 per unit of risk. If you would invest 28,200 in BizLink Holding on November 27, 2024 and sell it today you would earn a total of 37,200 from holding BizLink Holding or generate 131.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BizLink Holding vs. Cub Elecparts
Performance |
| Timeline |
| BizLink Holding |
| Cub Elecparts |
BizLink Holding and Cub Elecparts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BizLink Holding and Cub Elecparts
The main advantage of trading using opposite BizLink Holding and Cub Elecparts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BizLink Holding position performs unexpectedly, Cub Elecparts 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 Cub Elecparts will offset losses from the drop in Cub Elecparts' long position.| BizLink Holding vs. Hota Industrial Mfg | BizLink Holding vs. Chroma ATE | BizLink Holding vs. Sinbon Electronics Co | BizLink Holding vs. Tong Hsing Electronic |
| Cub Elecparts vs. Hota Industrial Mfg | Cub Elecparts vs. Eclat Textile Co | Cub Elecparts vs. Makalot Industrial Co | Cub Elecparts vs. King Slide Works |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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