Correlation Between Mekong Fisheries and Agriculture Printing
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries and Agriculture Printing 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 Mekong Fisheries and Agriculture Printing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mekong Fisheries JSC and Agriculture Printing and, you can compare the effects of market volatilities on Mekong Fisheries and Agriculture Printing 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 Mekong Fisheries with a short position of Agriculture Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and Agriculture Printing.
Diversification Opportunities for Mekong Fisheries and Agriculture Printing
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mekong and Agriculture is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC and Agriculture Printing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Printing and and Mekong Fisheries 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 Mekong Fisheries JSC are associated (or correlated) with Agriculture Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Printing and has no effect on the direction of Mekong Fisheries i.e., Mekong Fisheries and Agriculture Printing go up and down completely randomly.
Pair Corralation between Mekong Fisheries and Agriculture Printing
Assuming the 90 days trading horizon Mekong Fisheries JSC is expected to generate 1.69 times more return on investment than Agriculture Printing. However, Mekong Fisheries is 1.69 times more volatile than Agriculture Printing and. It trades about 0.03 of its potential returns per unit of risk. Agriculture Printing and is currently generating about -0.1 per unit of risk. If you would invest 689,000 in Mekong Fisheries JSC on September 1, 2024 and sell it today you would earn a total of 8,000 from holding Mekong Fisheries JSC or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mekong Fisheries JSC vs. Agriculture Printing and
Performance |
| Timeline |
| Mekong Fisheries JSC |
| Agriculture Printing and |
Mekong Fisheries and Agriculture Printing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekong Fisheries and Agriculture Printing
The main advantage of trading using opposite Mekong Fisheries and Agriculture Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries position performs unexpectedly, Agriculture Printing 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 Agriculture Printing will offset losses from the drop in Agriculture Printing's long position.| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries vs. Alphanam ME |
| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing vs. Alphanam ME |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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