Correlation Between CI Group and Comanche International
Can any of the company-specific risk be diversified away by investing in both CI Group and Comanche International 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 CI Group and Comanche International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Group Public and Comanche International Public, you can compare the effects of market volatilities on CI Group and Comanche International 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 CI Group with a short position of Comanche International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Group and Comanche International.
Diversification Opportunities for CI Group and Comanche International
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIG and Comanche is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding CI Group Public and Comanche International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comanche International and CI 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 CI Group Public are associated (or correlated) with Comanche International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comanche International has no effect on the direction of CI Group i.e., CI Group and Comanche International go up and down completely randomly.
Pair Corralation between CI Group and Comanche International
Assuming the 90 days trading horizon CI Group Public is expected to generate 0.84 times more return on investment than Comanche International. However, CI Group Public is 1.2 times less risky than Comanche International. It trades about -0.02 of its potential returns per unit of risk. Comanche International Public is currently generating about -0.12 per unit of risk. If you would invest 5.00 in CI Group Public on September 4, 2024 and sell it today you would lose (1.00) from holding CI Group Public or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Group Public vs. Comanche International Public
Performance |
| Timeline |
| CI Group Public |
| Comanche International |
CI Group and Comanche International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Group and Comanche International
The main advantage of trading using opposite CI Group and Comanche International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Group position performs unexpectedly, Comanche International 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 Comanche International will offset losses from the drop in Comanche International's long position.| CI Group vs. Jay Mart Public | CI Group vs. KCE Electronics Public | CI Group vs. Hana Microelectronics Public | CI Group vs. Energy Absolute Public |
| Comanche International vs. Com7 PCL | Comanche International vs. Central Retail | Comanche International vs. Dohome Public | Comanche International vs. Bangkok Chain Hospital |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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