Correlation Between PACIFIC ONLINE and FRASERS PROPERTY
Can any of the company-specific risk be diversified away by investing in both PACIFIC ONLINE and FRASERS PROPERTY 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 PACIFIC ONLINE and FRASERS PROPERTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACIFIC ONLINE and FRASERS PROPERTY, you can compare the effects of market volatilities on PACIFIC ONLINE and FRASERS PROPERTY 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 PACIFIC ONLINE with a short position of FRASERS PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC ONLINE and FRASERS PROPERTY.
Diversification Opportunities for PACIFIC ONLINE and FRASERS PROPERTY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PACIFIC and FRASERS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC ONLINE and FRASERS PROPERTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRASERS PROPERTY and PACIFIC ONLINE 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 PACIFIC ONLINE are associated (or correlated) with FRASERS PROPERTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRASERS PROPERTY has no effect on the direction of PACIFIC ONLINE i.e., PACIFIC ONLINE and FRASERS PROPERTY go up and down completely randomly.
Pair Corralation between PACIFIC ONLINE and FRASERS PROPERTY
If you would invest 60.00 in FRASERS PROPERTY on September 1, 2024 and sell it today you would earn a total of 3.00 from holding FRASERS PROPERTY or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PACIFIC ONLINE vs. FRASERS PROPERTY
Performance |
| Timeline |
| PACIFIC ONLINE |
| FRASERS PROPERTY |
PACIFIC ONLINE and FRASERS PROPERTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC ONLINE and FRASERS PROPERTY
The main advantage of trading using opposite PACIFIC ONLINE and FRASERS PROPERTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC ONLINE position performs unexpectedly, FRASERS PROPERTY 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 FRASERS PROPERTY will offset losses from the drop in FRASERS PROPERTY's long position.| PACIFIC ONLINE vs. BII Railway Transportation | PACIFIC ONLINE vs. Gaztransport Technigaz SA | PACIFIC ONLINE vs. USWE SPORTS AB | PACIFIC ONLINE vs. NTG Nordic Transport |
| FRASERS PROPERTY vs. OPEN HOUSE GROUP | FRASERS PROPERTY vs. Superior Plus Corp | FRASERS PROPERTY vs. NMI Holdings | FRASERS PROPERTY vs. Origin Agritech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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