Correlation Between INTER CARS and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both INTER CARS and SOCKET MOBILE 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 INTER CARS and SOCKET MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and SOCKET MOBILE NEW, you can compare the effects of market volatilities on INTER CARS and SOCKET MOBILE 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 INTER CARS with a short position of SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and SOCKET MOBILE.
Diversification Opportunities for INTER CARS and SOCKET MOBILE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTER and SOCKET is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW and INTER CARS 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 INTER CARS SA are associated (or correlated) with SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of INTER CARS i.e., INTER CARS and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between INTER CARS and SOCKET MOBILE
Assuming the 90 days horizon INTER CARS is expected to generate 1.11 times less return on investment than SOCKET MOBILE. But when comparing it to its historical volatility, INTER CARS SA is 2.02 times less risky than SOCKET MOBILE. It trades about 0.17 of its potential returns per unit of risk. SOCKET MOBILE NEW is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 137.00 in SOCKET MOBILE NEW on October 17, 2024 and sell it today you would earn a total of 8.00 from holding SOCKET MOBILE NEW or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. SOCKET MOBILE NEW
Performance |
| Timeline |
| INTER CARS SA |
| SOCKET MOBILE NEW |
INTER CARS and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and SOCKET MOBILE
The main advantage of trading using opposite INTER CARS and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| INTER CARS vs. American Homes 4 | INTER CARS vs. ADDUS HOMECARE | INTER CARS vs. Taylor Morrison Home | INTER CARS vs. Tsingtao Brewery |
| SOCKET MOBILE vs. Addus HomeCare | SOCKET MOBILE vs. CITY OFFICE REIT | SOCKET MOBILE vs. OFFICE DEPOT | SOCKET MOBILE vs. INTER CARS SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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