Correlation Between Concord Securities and Capital Futures
Can any of the company-specific risk be diversified away by investing in both Concord Securities and Capital Futures 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 Concord Securities and Capital Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Securities Co and Capital Futures Corp, you can compare the effects of market volatilities on Concord Securities and Capital Futures 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 Concord Securities with a short position of Capital Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Securities and Capital Futures.
Diversification Opportunities for Concord Securities and Capital Futures
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concord and Capital is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Concord Securities Co and Capital Futures Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Futures Corp and Concord Securities 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 Concord Securities Co are associated (or correlated) with Capital Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Futures Corp has no effect on the direction of Concord Securities i.e., Concord Securities and Capital Futures go up and down completely randomly.
Pair Corralation between Concord Securities and Capital Futures
Assuming the 90 days trading horizon Concord Securities is expected to generate 1.09 times less return on investment than Capital Futures. In addition to that, Concord Securities is 1.86 times more volatile than Capital Futures Corp. It trades about 0.03 of its total potential returns per unit of risk. Capital Futures Corp is currently generating about 0.06 per unit of volatility. If you would invest 4,945 in Capital Futures Corp on September 14, 2024 and sell it today you would earn a total of 945.00 from holding Capital Futures Corp or generate 19.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concord Securities Co vs. Capital Futures Corp
Performance |
| Timeline |
| Concord Securities |
| Capital Futures Corp |
Concord Securities and Capital Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Securities and Capital Futures
The main advantage of trading using opposite Concord Securities and Capital Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Securities position performs unexpectedly, Capital Futures 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 Capital Futures will offset losses from the drop in Capital Futures' long position.| Concord Securities vs. Voltronic Power Technology | Concord Securities vs. Asmedia Technology | Concord Securities vs. Thermaltake Technology Co | Concord Securities vs. Asia Metal Industries |
| Capital Futures vs. IBF Financial Holdings | Capital Futures vs. Capital Securities Corp | Capital Futures vs. President Securities Corp | Capital Futures vs. China Bills Finance |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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