Correlation Between Alphanam and Elcom Technology
Can any of the company-specific risk be diversified away by investing in both Alphanam and Elcom 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 Alphanam and Elcom Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Elcom Technology Communications, you can compare the effects of market volatilities on Alphanam and Elcom 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 Alphanam with a short position of Elcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Elcom Technology.
Diversification Opportunities for Alphanam and Elcom Technology
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alphanam and Elcom is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Elcom Technology Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elcom Technology Com 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 Elcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elcom Technology Com has no effect on the direction of Alphanam i.e., Alphanam and Elcom Technology go up and down completely randomly.
Pair Corralation between Alphanam and Elcom Technology
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Elcom Technology. In addition to that, Alphanam is 1.29 times more volatile than Elcom Technology Communications. It trades about -0.08 of its total potential returns per unit of risk. Elcom Technology Communications is currently generating about 0.12 per unit of volatility. If you would invest 2,385,000 in Elcom Technology Communications on August 26, 2024 and sell it today you would earn a total of 95,000 from holding Elcom Technology Communications or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Alphanam ME vs. Elcom Technology Communication
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Elcom Technology Com |
Alphanam and Elcom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Elcom Technology
The main advantage of trading using opposite Alphanam and Elcom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Elcom 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 Elcom Technology will offset losses from the drop in Elcom Technology's long position.| Alphanam vs. Transport and Industry | Alphanam vs. Petrolimex Information Technology | Alphanam vs. PVI Reinsurance Corp | Alphanam vs. Japan Vietnam Medical |
| Elcom Technology vs. Development Investment Construction | Elcom Technology vs. Nafoods Group JSC | Elcom Technology vs. CMC Investment JSC | Elcom Technology vs. Saigon Telecommunication Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |