Correlation Between Public Packages and CB Industrial
Can any of the company-specific risk be diversified away by investing in both Public Packages and CB Industrial 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 Public Packages and CB Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Packages Holdings and CB Industrial Product, you can compare the effects of market volatilities on Public Packages and CB Industrial 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 Public Packages with a short position of CB Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Packages and CB Industrial.
Diversification Opportunities for Public Packages and CB Industrial
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Public and 7076 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Public Packages Holdings and CB Industrial Product in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CB Industrial Product and Public Packages 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 Public Packages Holdings are associated (or correlated) with CB Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CB Industrial Product has no effect on the direction of Public Packages i.e., Public Packages and CB Industrial go up and down completely randomly.
Pair Corralation between Public Packages and CB Industrial
Assuming the 90 days trading horizon Public Packages is expected to generate 1.28 times less return on investment than CB Industrial. In addition to that, Public Packages is 1.03 times more volatile than CB Industrial Product. It trades about 0.03 of its total potential returns per unit of risk. CB Industrial Product is currently generating about 0.04 per unit of volatility. 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 |
Public Packages Holdings vs. CB Industrial Product
Performance |
| Timeline |
| Public Packages Holdings |
| CB Industrial Product |
Public Packages and CB Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Packages and CB Industrial
The main advantage of trading using opposite Public Packages and CB Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Packages position performs unexpectedly, CB Industrial 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 CB Industrial will offset losses from the drop in CB Industrial's long position.| Public Packages vs. K One Technology Bhd | Public Packages vs. Apollo Food Holdings | Public Packages vs. Ho Hup Construction | Public Packages vs. Homeritz Bhd |
| CB Industrial vs. Greatech Technology Bhd | CB Industrial vs. Genetec Technology Bhd | CB Industrial vs. PIE Industrial Bhd | CB Industrial vs. Supercomnet Technologies 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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