Correlation Between Coremax Corp and Giant Manufacturing
Can any of the company-specific risk be diversified away by investing in both Coremax Corp and Giant Manufacturing 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 Giant Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coremax Corp and Giant Manufacturing Co, you can compare the effects of market volatilities on Coremax Corp and Giant Manufacturing 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 Giant Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coremax Corp and Giant Manufacturing.
Diversification Opportunities for Coremax Corp and Giant Manufacturing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coremax and Giant is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Coremax Corp and Giant Manufacturing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giant Manufacturing 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 Giant Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giant Manufacturing has no effect on the direction of Coremax Corp i.e., Coremax Corp and Giant Manufacturing go up and down completely randomly.
Pair Corralation between Coremax Corp and Giant Manufacturing
Assuming the 90 days trading horizon Coremax Corp is expected to under-perform the Giant Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Coremax Corp is 1.13 times less risky than Giant Manufacturing. The stock trades about -0.04 of its potential returns per unit of risk. The Giant Manufacturing Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 23,250 in Giant Manufacturing Co on August 25, 2024 and sell it today you would lose (8,150) from holding Giant Manufacturing Co or give up 35.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Coremax Corp vs. Giant Manufacturing Co
Performance |
| Timeline |
| Coremax Corp |
| Giant Manufacturing |
Coremax Corp and Giant Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coremax Corp and Giant Manufacturing
The main advantage of trading using opposite Coremax Corp and Giant Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coremax Corp position performs unexpectedly, Giant Manufacturing 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 Giant Manufacturing will offset losses from the drop in Giant Manufacturing's long position.| Coremax Corp vs. Delta Electronics | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Hota Industrial Mfg | Coremax Corp vs. Ruentex Development Co |
| Giant Manufacturing vs. Merida Industry Co | Giant Manufacturing vs. President Chain Store | Giant Manufacturing vs. Cheng Shin Rubber | Giant Manufacturing vs. Uni President Enterprises 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |