Correlation Between CHIBA BANK and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both CHIBA BANK and COMINTL BANK 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 CHIBA BANK and COMINTL BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHIBA BANK and COMINTL BANK ADR1, you can compare the effects of market volatilities on CHIBA BANK and COMINTL BANK 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 CHIBA BANK with a short position of COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIBA BANK and COMINTL BANK.
Diversification Opportunities for CHIBA BANK and COMINTL BANK
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CHIBA and COMINTL is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CHIBA BANK and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 and CHIBA BANK 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 CHIBA BANK are associated (or correlated) with COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of CHIBA BANK i.e., CHIBA BANK and COMINTL BANK go up and down completely randomly.
Pair Corralation between CHIBA BANK and COMINTL BANK
Assuming the 90 days trading horizon CHIBA BANK is expected to generate 0.76 times more return on investment than COMINTL BANK. However, CHIBA BANK is 1.32 times less risky than COMINTL BANK. It trades about 0.32 of its potential returns per unit of risk. COMINTL BANK ADR1 is currently generating about 0.09 per unit of risk. If you would invest 660.00 in CHIBA BANK on August 28, 2024 and sell it today you would earn a total of 90.00 from holding CHIBA BANK or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHIBA BANK vs. COMINTL BANK ADR1
Performance |
| Timeline |
| CHIBA BANK |
| COMINTL BANK ADR1 |
CHIBA BANK and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHIBA BANK and COMINTL BANK
The main advantage of trading using opposite CHIBA BANK and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIBA BANK position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.The idea behind CHIBA BANK and COMINTL BANK ADR1 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |