Correlation Between Atesco Industrial and CIC Corp
Can any of the company-specific risk be diversified away by investing in both Atesco Industrial 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 Atesco Industrial and CIC Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atesco Industrial Cartering and CIC Corp, you can compare the effects of market volatilities on Atesco Industrial 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 Atesco Industrial with a short position of CIC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and CIC Corp.
Diversification Opportunities for Atesco Industrial and CIC Corp
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atesco and CIC is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and CIC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIC Corp and Atesco Industrial 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 Atesco Industrial Cartering 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 Atesco Industrial i.e., Atesco Industrial and CIC Corp go up and down completely randomly.
Pair Corralation between Atesco Industrial and CIC Corp
Assuming the 90 days trading horizon Atesco Industrial Cartering is expected to under-perform the CIC Corp. In addition to that, Atesco Industrial is 2.18 times more volatile than CIC Corp. It trades about -0.69 of its total potential returns per unit of risk. CIC Corp is currently generating about -0.15 per unit of volatility. If you would invest 1,950,000 in CIC Corp on January 11, 2025 and sell it today you would lose (185,000) from holding CIC Corp or give up 9.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Atesco Industrial Cartering vs. CIC Corp
Performance |
| Timeline |
| Atesco Industrial |
| CIC Corp |
Atesco Industrial and CIC Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atesco Industrial and CIC Corp
The main advantage of trading using opposite Atesco Industrial and CIC Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atesco Industrial 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.| Atesco Industrial vs. Ngan Son JSC | Atesco Industrial vs. Song Hong Aluminum | Atesco Industrial vs. Hoang Anh Gia | Atesco Industrial vs. BIDV Securities JSC |
| CIC Corp vs. Book And Educational | CIC Corp vs. Fecon Mining JSC | CIC Corp vs. South Books Educational | CIC Corp vs. Tay Ninh Rubber |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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