Correlation Between ABC TRANSPORT and SECURE ELECTRONIC
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By analyzing existing cross correlation between ABC TRANSPORT PLC and SECURE ELECTRONIC TECHNOLOGY, you can compare the effects of market volatilities on ABC TRANSPORT and SECURE ELECTRONIC 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 ABC TRANSPORT with a short position of SECURE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABC TRANSPORT and SECURE ELECTRONIC.
Diversification Opportunities for ABC TRANSPORT and SECURE ELECTRONIC
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABC and SECURE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ABC TRANSPORT PLC and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC and ABC TRANSPORT 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 ABC TRANSPORT PLC are associated (or correlated) with SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of ABC TRANSPORT i.e., ABC TRANSPORT and SECURE ELECTRONIC go up and down completely randomly.
Pair Corralation between ABC TRANSPORT and SECURE ELECTRONIC
Assuming the 90 days trading horizon ABC TRANSPORT PLC is expected to generate 0.43 times more return on investment than SECURE ELECTRONIC. However, ABC TRANSPORT PLC is 2.33 times less risky than SECURE ELECTRONIC. It trades about -0.1 of its potential returns per unit of risk. SECURE ELECTRONIC TECHNOLOGY is currently generating about -0.08 per unit of risk. If you would invest 122.00 in ABC TRANSPORT PLC on November 5, 2024 and sell it today you would lose (8.00) from holding ABC TRANSPORT PLC or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABC TRANSPORT PLC vs. SECURE ELECTRONIC TECHNOLOGY
Performance |
| Timeline |
| ABC TRANSPORT PLC |
| SECURE ELECTRONIC |
ABC TRANSPORT and SECURE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABC TRANSPORT and SECURE ELECTRONIC
The main advantage of trading using opposite ABC TRANSPORT and SECURE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABC TRANSPORT position performs unexpectedly, SECURE ELECTRONIC 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 SECURE ELECTRONIC will offset losses from the drop in SECURE ELECTRONIC's long position.| ABC TRANSPORT vs. NEM INSURANCE PLC | ABC TRANSPORT vs. DEAP CAPITAL MANAGEMENT | ABC TRANSPORT vs. LIVINGTRUST MORTGAGE BANK | ABC TRANSPORT vs. WEMA BANK PLC |
| SECURE ELECTRONIC vs. ASO SAVINGS AND | SECURE ELECTRONIC vs. CUSTODIAN INVESTMENT PLC | SECURE ELECTRONIC vs. BUA FOODS PLC | SECURE ELECTRONIC vs. STACO INSURANCE PLC |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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