Correlation Between Grand Ocean and C Media
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and C Media 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 Grand Ocean and C Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and C Media Electronics, you can compare the effects of market volatilities on Grand Ocean and C Media 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 Grand Ocean with a short position of C Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and C Media.
Diversification Opportunities for Grand Ocean and C Media
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grand and 6237 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and C Media Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Media Electronics and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with C Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Media Electronics has no effect on the direction of Grand Ocean i.e., Grand Ocean and C Media go up and down completely randomly.
Pair Corralation between Grand Ocean and C Media
Assuming the 90 days trading horizon Grand Ocean Retail is expected to generate 2.28 times more return on investment than C Media. However, Grand Ocean is 2.28 times more volatile than C Media Electronics. It trades about 0.09 of its potential returns per unit of risk. C Media Electronics is currently generating about -0.04 per unit of risk. If you would invest 1,155 in Grand Ocean Retail on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Grand Ocean Retail or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. C Media Electronics
Performance |
| Timeline |
| Grand Ocean Retail |
| C Media Electronics |
Grand Ocean and C Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and C Media
The main advantage of trading using opposite Grand Ocean and C Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, C Media 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 C Media will offset losses from the drop in C Media's long position.| Grand Ocean vs. First Steamship Co | Grand Ocean vs. Far Eastern Department | Grand Ocean vs. LongDa Construction Development | Grand Ocean vs. Collins Co |
| C Media vs. Sitronix Technology Corp | C Media vs. Kinsus Interconnect Technology | C Media vs. WiseChip Semiconductor | C Media vs. Novatek Microelectronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |