Correlation Between Good Finance and Concord Securities
Can any of the company-specific risk be diversified away by investing in both Good Finance and Concord Securities 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 Good Finance and Concord Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Good Finance Securities and Concord Securities Co, you can compare the effects of market volatilities on Good Finance and Concord Securities 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 Good Finance with a short position of Concord Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Finance and Concord Securities.
Diversification Opportunities for Good Finance and Concord Securities
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Good and Concord is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Good Finance Securities and Concord Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Securities and Good Finance 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 Good Finance Securities are associated (or correlated) with Concord Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Securities has no effect on the direction of Good Finance i.e., Good Finance and Concord Securities go up and down completely randomly.
Pair Corralation between Good Finance and Concord Securities
Assuming the 90 days trading horizon Good Finance Securities is expected to generate 1.01 times more return on investment than Concord Securities. However, Good Finance is 1.01 times more volatile than Concord Securities Co. It trades about 0.09 of its potential returns per unit of risk. Concord Securities Co is currently generating about 0.03 per unit of risk. If you would invest 1,480 in Good Finance Securities on September 14, 2024 and sell it today you would earn a total of 920.00 from holding Good Finance Securities or generate 62.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Good Finance Securities vs. Concord Securities Co
Performance |
| Timeline |
| Good Finance Securities |
| Concord Securities |
Good Finance and Concord Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Finance and Concord Securities
The main advantage of trading using opposite Good Finance and Concord Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Finance position performs unexpectedly, Concord Securities 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 Concord Securities will offset losses from the drop in Concord Securities' long position.| Good Finance vs. IBF Financial Holdings | Good Finance vs. Capital Securities Corp | Good Finance vs. President Securities Corp | Good Finance vs. China Bills Finance |
| Concord Securities vs. Voltronic Power Technology | Concord Securities vs. Asmedia Technology | Concord Securities vs. Thermaltake Technology Co | Concord Securities vs. Asia Metal Industries |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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