Correlation Between Country Group and Synnex Public
Can any of the company-specific risk be diversified away by investing in both Country Group and Synnex Public 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 Country Group and Synnex Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Country Group Holdings and Synnex Public, you can compare the effects of market volatilities on Country Group and Synnex Public 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 Country Group with a short position of Synnex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Group and Synnex Public.
Diversification Opportunities for Country Group and Synnex Public
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Country and Synnex is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Country Group Holdings and Synnex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex Public and Country 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 Country Group Holdings are associated (or correlated) with Synnex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Public has no effect on the direction of Country Group i.e., Country Group and Synnex Public go up and down completely randomly.
Pair Corralation between Country Group and Synnex Public
Assuming the 90 days trading horizon Country Group Holdings is expected to generate 34.0 times more return on investment than Synnex Public. However, Country Group is 34.0 times more volatile than Synnex Public. It trades about 0.08 of its potential returns per unit of risk. Synnex Public is currently generating about 0.12 per unit of risk. If you would invest 78.00 in Country Group Holdings on September 1, 2024 and sell it today you would lose (10.00) from holding Country Group Holdings or give up 12.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Country Group Holdings vs. Synnex Public
Performance |
| Timeline |
| Country Group Holdings |
| Synnex Public |
Country Group and Synnex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Group and Synnex Public
The main advantage of trading using opposite Country Group and Synnex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Group position performs unexpectedly, Synnex Public 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 Synnex Public will offset losses from the drop in Synnex Public's long position.| Country Group vs. Asia Plus Group | Country Group vs. Globlex Holding Management | Country Group vs. Asia Green Energy | Country Group vs. Amanah Leasing Public |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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