Correlation Between PACIFIC ONLINE and FIRST SHIP
Can any of the company-specific risk be diversified away by investing in both PACIFIC ONLINE and FIRST SHIP 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 FIRST SHIP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACIFIC ONLINE and FIRST SHIP LEASE, you can compare the effects of market volatilities on PACIFIC ONLINE and FIRST SHIP 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 FIRST SHIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC ONLINE and FIRST SHIP.
Diversification Opportunities for PACIFIC ONLINE and FIRST SHIP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PACIFIC and FIRST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC ONLINE and FIRST SHIP LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SHIP LEASE 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 FIRST SHIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SHIP LEASE has no effect on the direction of PACIFIC ONLINE i.e., PACIFIC ONLINE and FIRST SHIP go up and down completely randomly.
Pair Corralation between PACIFIC ONLINE and FIRST SHIP
If you would invest 15.00 in PACIFIC ONLINE on November 3, 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 | 95.65% |
| Values | Daily Returns |
PACIFIC ONLINE vs. FIRST SHIP LEASE
Performance |
| Timeline |
| PACIFIC ONLINE |
| FIRST SHIP LEASE |
PACIFIC ONLINE and FIRST SHIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC ONLINE and FIRST SHIP
The main advantage of trading using opposite PACIFIC ONLINE and FIRST SHIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC ONLINE position performs unexpectedly, FIRST SHIP 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 FIRST SHIP will offset losses from the drop in FIRST SHIP's long position.| PACIFIC ONLINE vs. STMICROELECTRONICS | PACIFIC ONLINE vs. LG Electronics | PACIFIC ONLINE vs. FRACTAL GAMING GROUP | PACIFIC ONLINE vs. OURGAME INTHOLDL 00005 |
| FIRST SHIP vs. BROADSTNET LEADL 00025 | FIRST SHIP vs. ADRIATIC METALS LS 013355 | FIRST SHIP vs. MAGNUM MINING EXP | FIRST SHIP vs. Yuexiu Transport Infrastructure |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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