Correlation Between Coremax Corp and International CSRC
Can any of the company-specific risk be diversified away by investing in both Coremax Corp and International CSRC 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 Coremax Corp and International CSRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coremax Corp and International CSRC Investment, you can compare the effects of market volatilities on Coremax Corp and International CSRC 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 Coremax Corp with a short position of International CSRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coremax Corp and International CSRC.
Diversification Opportunities for Coremax Corp and International CSRC
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coremax and International is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Coremax Corp and International CSRC Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International CSRC and Coremax Corp 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 Coremax Corp are associated (or correlated) with International CSRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International CSRC has no effect on the direction of Coremax Corp i.e., Coremax Corp and International CSRC go up and down completely randomly.
Pair Corralation between Coremax Corp and International CSRC
Assuming the 90 days trading horizon Coremax Corp is expected to generate 0.87 times more return on investment than International CSRC. However, Coremax Corp is 1.14 times less risky than International CSRC. It trades about -0.03 of its potential returns per unit of risk. International CSRC Investment is currently generating about -0.09 per unit of risk. If you would invest 5,500 in Coremax Corp on October 28, 2024 and sell it today you would lose (50.00) from holding Coremax Corp or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coremax Corp vs. International CSRC Investment
Performance |
| Timeline |
| Coremax Corp |
| International CSRC |
Coremax Corp and International CSRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coremax Corp and International CSRC
The main advantage of trading using opposite Coremax Corp and International CSRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coremax Corp position performs unexpectedly, International CSRC 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 International CSRC will offset losses from the drop in International CSRC's long position.| Coremax Corp vs. Mechema Chemicals Int | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Delta Electronics | Coremax Corp vs. Hota Industrial Mfg |
| International CSRC vs. Nan Ya Plastics | International CSRC vs. Formosa Chemicals Fibre | International CSRC vs. China Steel Corp | International CSRC vs. Formosa Petrochemical Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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