Correlation Between Alphanam and CIC Corp
Can any of the company-specific risk be diversified away by investing in both Alphanam and CIC Corp 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 Alphanam and CIC Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and CIC Corp, you can compare the effects of market volatilities on Alphanam and CIC Corp 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 Alphanam with a short position of CIC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and CIC Corp.
Diversification Opportunities for Alphanam and CIC Corp
Pay attention - limited upside
The 3 months correlation between Alphanam and CIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and CIC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIC Corp and Alphanam 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 Alphanam ME are associated (or correlated) with CIC Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIC Corp has no effect on the direction of Alphanam i.e., Alphanam and CIC Corp go up and down completely randomly.
Pair Corralation between Alphanam and CIC Corp
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the CIC Corp. In addition to that, Alphanam is 3.44 times more volatile than CIC Corp. It trades about -0.1 of its total potential returns per unit of risk. CIC Corp is currently generating about -0.02 per unit of volatility. If you would invest 1,880,000 in CIC Corp on August 31, 2024 and sell it today you would lose (160,000) from holding CIC Corp or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 61.73% |
| Values | Daily Returns |
Alphanam ME vs. CIC Corp
Performance |
| Timeline |
| Alphanam ME |
| CIC Corp |
Alphanam and CIC Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and CIC Corp
The main advantage of trading using opposite Alphanam and CIC Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, CIC Corp 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 CIC Corp will offset losses from the drop in CIC Corp's long position.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
| CIC Corp vs. Song Hong Garment | CIC Corp vs. Alphanam ME | CIC Corp vs. Hochiminh City Metal | CIC Corp vs. Atesco Industrial Cartering |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |