Correlation Between CAIRN HOMES and Comba Telecom
Can any of the company-specific risk be diversified away by investing in both CAIRN HOMES and Comba Telecom 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 CAIRN HOMES and Comba Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAIRN HOMES EO and Comba Telecom Systems, you can compare the effects of market volatilities on CAIRN HOMES and Comba Telecom 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 CAIRN HOMES with a short position of Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAIRN HOMES and Comba Telecom.
Diversification Opportunities for CAIRN HOMES and Comba Telecom
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CAIRN and Comba is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CAIRN HOMES EO and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems and CAIRN HOMES 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 CAIRN HOMES EO are associated (or correlated) with Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of CAIRN HOMES i.e., CAIRN HOMES and Comba Telecom go up and down completely randomly.
Pair Corralation between CAIRN HOMES and Comba Telecom
Assuming the 90 days horizon CAIRN HOMES EO is expected to generate 1.01 times more return on investment than Comba Telecom. However, CAIRN HOMES is 1.01 times more volatile than Comba Telecom Systems. It trades about -0.06 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about -0.13 per unit of risk. If you would invest 229.00 in CAIRN HOMES EO on October 17, 2024 and sell it today you would lose (10.00) from holding CAIRN HOMES EO or give up 4.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAIRN HOMES EO vs. Comba Telecom Systems
Performance |
| Timeline |
| CAIRN HOMES EO |
| Comba Telecom Systems |
CAIRN HOMES and Comba Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAIRN HOMES and Comba Telecom
The main advantage of trading using opposite CAIRN HOMES and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAIRN HOMES position performs unexpectedly, Comba Telecom 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.| CAIRN HOMES vs. Jupiter Fund Management | CAIRN HOMES vs. GRIFFIN MINING LTD | CAIRN HOMES vs. GALENA MINING LTD | CAIRN HOMES vs. De Grey Mining |
| Comba Telecom vs. Information Services International Dentsu | Comba Telecom vs. CAIRN HOMES EO | Comba Telecom vs. DATAGROUP SE | Comba Telecom vs. Automatic Data Processing |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |