Correlation Between Berli Jucker and Regional Container
Can any of the company-specific risk be diversified away by investing in both Berli Jucker and Regional Container 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 Berli Jucker and Regional Container into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berli Jucker Public and Regional Container Lines, you can compare the effects of market volatilities on Berli Jucker and Regional Container 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 Berli Jucker with a short position of Regional Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berli Jucker and Regional Container.
Diversification Opportunities for Berli Jucker and Regional Container
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Berli and Regional is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Berli Jucker Public and Regional Container Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Container Lines and Berli Jucker 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 Berli Jucker Public are associated (or correlated) with Regional Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Container Lines has no effect on the direction of Berli Jucker i.e., Berli Jucker and Regional Container go up and down completely randomly.
Pair Corralation between Berli Jucker and Regional Container
Assuming the 90 days trading horizon Berli Jucker Public is expected to under-perform the Regional Container. But the stock apears to be less risky and, when comparing its historical volatility, Berli Jucker Public is 1.45 times less risky than Regional Container. The stock trades about -0.02 of its potential returns per unit of risk. The Regional Container Lines is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,471 in Regional Container Lines on September 3, 2024 and sell it today you would earn a total of 354.00 from holding Regional Container Lines or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berli Jucker Public vs. Regional Container Lines
Performance |
| Timeline |
| Berli Jucker Public |
| Regional Container Lines |
Berli Jucker and Regional Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berli Jucker and Regional Container
The main advantage of trading using opposite Berli Jucker and Regional Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berli Jucker position performs unexpectedly, Regional Container 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 Regional Container will offset losses from the drop in Regional Container's long position.| Berli Jucker vs. Airports of Thailand | Berli Jucker vs. PTT Public | Berli Jucker vs. Bangkok Dusit Medical | Berli Jucker vs. Kasikornbank Public |
| Regional Container vs. Precious Shipping Public | Regional Container vs. Thoresen Thai Agencies | Regional Container vs. The Siam Cement | Regional Container vs. PTT Public |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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