Correlation Between CB Industrial and Public Packages
Can any of the company-specific risk be diversified away by investing in both CB Industrial and Public Packages 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 CB Industrial and Public Packages into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CB Industrial Product and Public Packages Holdings, you can compare the effects of market volatilities on CB Industrial and Public Packages 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 CB Industrial with a short position of Public Packages. Check out your portfolio center. Please also check ongoing floating volatility patterns of CB Industrial and Public Packages.
Diversification Opportunities for CB Industrial and Public Packages
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 7076 and Public is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CB Industrial Product and Public Packages Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Packages Holdings and CB Industrial 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 CB Industrial Product are associated (or correlated) with Public Packages. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Packages Holdings has no effect on the direction of CB Industrial i.e., CB Industrial and Public Packages go up and down completely randomly.
Pair Corralation between CB Industrial and Public Packages
Assuming the 90 days trading horizon CB Industrial Product is expected to generate 0.97 times more return on investment than Public Packages. However, CB Industrial Product is 1.03 times less risky than Public Packages. It trades about 0.04 of its potential returns per unit of risk. Public Packages Holdings is currently generating about 0.03 per unit of risk. If you would invest 100.00 in CB Industrial Product on August 31, 2024 and sell it today you would earn a total of 34.00 from holding CB Industrial Product or generate 34.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.49% |
| Values | Daily Returns |
CB Industrial Product vs. Public Packages Holdings
Performance |
| Timeline |
| CB Industrial Product |
| Public Packages Holdings |
CB Industrial and Public Packages Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CB Industrial and Public Packages
The main advantage of trading using opposite CB Industrial and Public Packages positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CB Industrial position performs unexpectedly, Public Packages 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 Public Packages will offset losses from the drop in Public Packages' long position.| CB Industrial vs. Greatech Technology Bhd | CB Industrial vs. Genetec Technology Bhd | CB Industrial vs. PIE Industrial Bhd | CB Industrial vs. Supercomnet Technologies Bhd |
| Public Packages vs. K One Technology Bhd | Public Packages vs. Apollo Food Holdings | Public Packages vs. Ho Hup Construction | Public Packages vs. Homeritz Bhd |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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