Correlation Between ADRIATIC METALS and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS and COMINTL BANK 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 ADRIATIC METALS and COMINTL BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and COMINTL BANK ADR1, you can compare the effects of market volatilities on ADRIATIC METALS and COMINTL BANK 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 ADRIATIC METALS with a short position of COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and COMINTL BANK.
Diversification Opportunities for ADRIATIC METALS and COMINTL BANK
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ADRIATIC and COMINTL is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 are associated (or correlated) with COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and COMINTL BANK go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and COMINTL BANK
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 2.36 times more return on investment than COMINTL BANK. However, ADRIATIC METALS is 2.36 times more volatile than COMINTL BANK ADR1. It trades about 0.04 of its potential returns per unit of risk. COMINTL BANK ADR1 is currently generating about -0.02 per unit of risk. If you would invest 240.00 in ADRIATIC METALS LS 013355 on September 12, 2024 and sell it today you would earn a total of 4.00 from holding ADRIATIC METALS LS 013355 or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. COMINTL BANK ADR1
Performance |
| Timeline |
| ADRIATIC METALS LS |
| COMINTL BANK ADR1 |
ADRIATIC METALS and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and COMINTL BANK
The main advantage of trading using opposite ADRIATIC METALS and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| ADRIATIC METALS vs. American Lithium Corp | ADRIATIC METALS vs. Superior Plus Corp | ADRIATIC METALS vs. SIVERS SEMICONDUCTORS AB | ADRIATIC METALS vs. Reliance Steel Aluminum |
| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB | COMINTL BANK vs. CHINA HUARONG ENERHD 50 | COMINTL BANK vs. NORDIC HALIBUT AS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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