Correlation Between American Commerce and THK Co
Can any of the company-specific risk be diversified away by investing in both American Commerce and THK Co 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 American Commerce and THK Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Commerce Solutions and THK Co Ltd, you can compare the effects of market volatilities on American Commerce and THK Co 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 American Commerce with a short position of THK Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Commerce and THK Co.
Diversification Opportunities for American Commerce and THK Co
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and THK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Commerce Solutions and THK Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THK Co and American Commerce 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 American Commerce Solutions are associated (or correlated) with THK Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THK Co has no effect on the direction of American Commerce i.e., American Commerce and THK Co go up and down completely randomly.
Pair Corralation between American Commerce and THK Co
If you would invest 875.00 in THK Co Ltd on September 12, 2024 and sell it today you would earn a total of 305.00 from holding THK Co Ltd or generate 34.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Commerce Solutions vs. THK Co Ltd
Performance |
| Timeline |
| American Commerce |
| THK Co |
American Commerce and THK Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Commerce and THK Co
The main advantage of trading using opposite American Commerce and THK Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Commerce position performs unexpectedly, THK Co 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 THK Co will offset losses from the drop in THK Co's long position.| American Commerce vs. Aumann AG | American Commerce vs. Alfa Laval AB | American Commerce vs. Arista Power | American Commerce vs. Atlas Copco AB |
| THK Co vs. Xinjiang Goldwind Science | THK Co vs. American Superconductor | THK Co vs. Cummins | THK Co vs. Aquagold International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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