Correlation Between Global PMX and Cub Elecparts
Can any of the company-specific risk be diversified away by investing in both Global PMX 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 Global PMX and Cub Elecparts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global PMX Co and Cub Elecparts, you can compare the effects of market volatilities on Global PMX 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 Global PMX with a short position of Cub Elecparts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global PMX and Cub Elecparts.
Diversification Opportunities for Global PMX and Cub Elecparts
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Cub is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global PMX Co and Cub Elecparts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cub Elecparts and Global PMX 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 Global PMX Co 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 Global PMX i.e., Global PMX and Cub Elecparts go up and down completely randomly.
Pair Corralation between Global PMX and Cub Elecparts
Assuming the 90 days trading horizon Global PMX Co is expected to under-perform the Cub Elecparts. In addition to that, Global PMX is 1.48 times more volatile than Cub Elecparts. It trades about -0.15 of its total potential returns per unit of risk. Cub Elecparts is currently generating about 0.03 per unit of volatility. If you would invest 9,880 in Cub Elecparts on September 2, 2024 and sell it today you would earn a total of 120.00 from holding Cub Elecparts or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global PMX Co vs. Cub Elecparts
Performance |
| Timeline |
| Global PMX |
| Cub Elecparts |
Global PMX and Cub Elecparts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global PMX and Cub Elecparts
The main advantage of trading using opposite Global PMX and Cub Elecparts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global PMX 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.| Global PMX vs. Hota Industrial Mfg | Global PMX vs. BizLink Holding | Global PMX vs. Cub Elecparts | Global PMX vs. Hu Lane Associate |
| Cub Elecparts vs. Chaintech Technology Corp | Cub Elecparts vs. Avision | Cub Elecparts vs. Clevo Co | Cub Elecparts vs. Elitegroup Computer Systems |
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
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |