Correlation Between PACIFIC ONLINE and RETAIL FOOD
Can any of the company-specific risk be diversified away by investing in both PACIFIC ONLINE and RETAIL FOOD 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 RETAIL FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACIFIC ONLINE and RETAIL FOOD GROUP, you can compare the effects of market volatilities on PACIFIC ONLINE and RETAIL FOOD 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 RETAIL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC ONLINE and RETAIL FOOD.
Diversification Opportunities for PACIFIC ONLINE and RETAIL FOOD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PACIFIC and RETAIL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC ONLINE and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD GROUP 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 RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of PACIFIC ONLINE i.e., PACIFIC ONLINE and RETAIL FOOD go up and down completely randomly.
Pair Corralation between PACIFIC ONLINE and RETAIL FOOD
If you would invest 15.00 in PACIFIC ONLINE on November 5, 2024 and sell it today you would earn a total of 0.00 from holding PACIFIC ONLINE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PACIFIC ONLINE vs. RETAIL FOOD GROUP
Performance |
| Timeline |
| PACIFIC ONLINE |
| RETAIL FOOD GROUP |
PACIFIC ONLINE and RETAIL FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC ONLINE and RETAIL FOOD
The main advantage of trading using opposite PACIFIC ONLINE and RETAIL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC ONLINE position performs unexpectedly, RETAIL FOOD 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 RETAIL FOOD will offset losses from the drop in RETAIL FOOD's long position.| PACIFIC ONLINE vs. HK Electric Investments | PACIFIC ONLINE vs. Scottish Mortgage Investment | PACIFIC ONLINE vs. Fast Retailing Co | PACIFIC ONLINE vs. Tradegate AG Wertpapierhandelsbank |
| RETAIL FOOD vs. SIVERS SEMICONDUCTORS AB | RETAIL FOOD vs. NorAm Drilling AS | RETAIL FOOD vs. Volkswagen AG | RETAIL FOOD vs. Darden Restaurants |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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