Correlation Between Pontex Polyblend and Simplo Technology
Can any of the company-specific risk be diversified away by investing in both Pontex Polyblend and Simplo Technology 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 Pontex Polyblend and Simplo Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pontex Polyblend CoLtd and Simplo Technology Co, you can compare the effects of market volatilities on Pontex Polyblend and Simplo Technology 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 Pontex Polyblend with a short position of Simplo Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pontex Polyblend and Simplo Technology.
Diversification Opportunities for Pontex Polyblend and Simplo Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pontex and Simplo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pontex Polyblend CoLtd and Simplo Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplo Technology and Pontex Polyblend 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 Pontex Polyblend CoLtd are associated (or correlated) with Simplo Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplo Technology has no effect on the direction of Pontex Polyblend i.e., Pontex Polyblend and Simplo Technology go up and down completely randomly.
Pair Corralation between Pontex Polyblend and Simplo Technology
Assuming the 90 days trading horizon Pontex Polyblend CoLtd is expected to generate 1.2 times more return on investment than Simplo Technology. However, Pontex Polyblend is 1.2 times more volatile than Simplo Technology Co. It trades about 0.12 of its potential returns per unit of risk. Simplo Technology Co is currently generating about 0.14 per unit of risk. If you would invest 2,020 in Pontex Polyblend CoLtd on August 31, 2024 and sell it today you would earn a total of 170.00 from holding Pontex Polyblend CoLtd or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pontex Polyblend CoLtd vs. Simplo Technology Co
Performance |
| Timeline |
| Pontex Polyblend CoLtd |
| Simplo Technology |
Pontex Polyblend and Simplo Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pontex Polyblend and Simplo Technology
The main advantage of trading using opposite Pontex Polyblend and Simplo Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pontex Polyblend position performs unexpectedly, Simplo Technology 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 Simplo Technology will offset losses from the drop in Simplo Technology's long position.| Pontex Polyblend vs. Cheng Shin Rubber | Pontex Polyblend vs. Nankang Rubber Tire | Pontex Polyblend vs. USI Corp | Pontex Polyblend vs. Asia Polymer Corp |
| Simplo Technology vs. Dynapack International Technology | Simplo Technology vs. Catcher Technology Co | Simplo Technology vs. Delta Electronics | Simplo Technology vs. Powertech Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |