Correlation Between CEO Group and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both CEO Group and Mekong Fisheries 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 CEO Group and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEO Group JSC and Mekong Fisheries JSC, you can compare the effects of market volatilities on CEO Group and Mekong Fisheries 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 CEO Group with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEO Group and Mekong Fisheries.
Diversification Opportunities for CEO Group and Mekong Fisheries
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CEO and Mekong is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding CEO Group JSC and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and CEO Group 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 CEO Group JSC are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of CEO Group i.e., CEO Group and Mekong Fisheries go up and down completely randomly.
Pair Corralation between CEO Group and Mekong Fisheries
Assuming the 90 days trading horizon CEO Group JSC is expected to under-perform the Mekong Fisheries. But the stock apears to be less risky and, when comparing its historical volatility, CEO Group JSC is 1.19 times less risky than Mekong Fisheries. The stock trades about -0.17 of its potential returns per unit of risk. The Mekong Fisheries JSC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 730,000 in Mekong Fisheries JSC on October 30, 2024 and sell it today you would lose (23,000) from holding Mekong Fisheries JSC or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
CEO Group JSC vs. Mekong Fisheries JSC
Performance |
| Timeline |
| CEO Group JSC |
| Mekong Fisheries JSC |
CEO Group and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEO Group and Mekong Fisheries
The main advantage of trading using opposite CEO Group and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEO Group position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| CEO Group vs. HVC Investment and | CEO Group vs. Tng Investment And | CEO Group vs. PV2 Investment JSC | CEO Group vs. Thong Nhat Rubber |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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