Correlation Between CEO Group and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both CEO Group and Atesco Industrial 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 Atesco Industrial 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 Atesco Industrial Cartering, you can compare the effects of market volatilities on CEO Group and Atesco Industrial 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 Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEO Group and Atesco Industrial.
Diversification Opportunities for CEO Group and Atesco Industrial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEO and Atesco is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CEO Group JSC and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial 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 Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of CEO Group i.e., CEO Group and Atesco Industrial go up and down completely randomly.
Pair Corralation between CEO Group and Atesco Industrial
Assuming the 90 days trading horizon CEO Group JSC is expected to generate 0.28 times more return on investment than Atesco Industrial. However, CEO Group JSC is 3.55 times less risky than Atesco Industrial. It trades about -0.17 of its potential returns per unit of risk. Atesco Industrial Cartering is currently generating about -0.23 per unit of risk. If you would invest 1,340,000 in CEO Group JSC on October 29, 2024 and sell it today you would lose (100,000) from holding CEO Group JSC or give up 7.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.68% |
| Values | Daily Returns |
CEO Group JSC vs. Atesco Industrial Cartering
Performance |
| Timeline |
| CEO Group JSC |
| Atesco Industrial |
CEO Group and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEO Group and Atesco Industrial
The main advantage of trading using opposite CEO Group and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEO Group position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| CEO Group vs. DIC Holdings Construction | CEO Group vs. Sao Vang Rubber | CEO Group vs. Danang Rubber JSC | CEO Group vs. Vietnam Rubber Group |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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