Correlation Between 1369 Construction and Century Synthetic
Can any of the company-specific risk be diversified away by investing in both 1369 Construction and Century Synthetic 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 1369 Construction and Century Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1369 Construction JSC and Century Synthetic Fiber, you can compare the effects of market volatilities on 1369 Construction and Century Synthetic 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 1369 Construction with a short position of Century Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1369 Construction and Century Synthetic.
Diversification Opportunities for 1369 Construction and Century Synthetic
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 1369 and Century is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 1369 Construction JSC and Century Synthetic Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Synthetic Fiber and 1369 Construction 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 1369 Construction JSC are associated (or correlated) with Century Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Synthetic Fiber has no effect on the direction of 1369 Construction i.e., 1369 Construction and Century Synthetic go up and down completely randomly.
Pair Corralation between 1369 Construction and Century Synthetic
Assuming the 90 days trading horizon 1369 Construction JSC is expected to generate 1.28 times more return on investment than Century Synthetic. However, 1369 Construction is 1.28 times more volatile than Century Synthetic Fiber. It trades about 0.02 of its potential returns per unit of risk. Century Synthetic Fiber is currently generating about 0.01 per unit of risk. If you would invest 572,820 in 1369 Construction JSC on September 12, 2024 and sell it today you would earn a total of 67,180 from holding 1369 Construction JSC or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
1369 Construction JSC vs. Century Synthetic Fiber
Performance |
| Timeline |
| 1369 Construction JSC |
| Century Synthetic Fiber |
1369 Construction and Century Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1369 Construction and Century Synthetic
The main advantage of trading using opposite 1369 Construction and Century Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1369 Construction position performs unexpectedly, Century Synthetic 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 Century Synthetic will offset losses from the drop in Century Synthetic's long position.| 1369 Construction vs. FIT INVEST JSC | 1369 Construction vs. Damsan JSC | 1369 Construction vs. An Phat Plastic | 1369 Construction vs. Alphanam ME |
| Century Synthetic vs. FIT INVEST JSC | Century Synthetic vs. Damsan JSC | Century Synthetic vs. An Phat Plastic | Century Synthetic vs. Alphanam ME |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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