Correlation Between COMINTL BANK and G8 EDUCATION
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK and G8 EDUCATION 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 COMINTL BANK and G8 EDUCATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and G8 EDUCATION, you can compare the effects of market volatilities on COMINTL BANK and G8 EDUCATION 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 COMINTL BANK with a short position of G8 EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and G8 EDUCATION.
Diversification Opportunities for COMINTL BANK and G8 EDUCATION
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between COMINTL and 3EAG is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and G8 EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G8 EDUCATION and COMINTL 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 COMINTL BANK ADR1 are associated (or correlated) with G8 EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G8 EDUCATION has no effect on the direction of COMINTL BANK i.e., COMINTL BANK and G8 EDUCATION go up and down completely randomly.
Pair Corralation between COMINTL BANK and G8 EDUCATION
Assuming the 90 days trading horizon COMINTL BANK is expected to generate 2.07 times less return on investment than G8 EDUCATION. In addition to that, COMINTL BANK is 1.22 times more volatile than G8 EDUCATION. It trades about 0.02 of its total potential returns per unit of risk. G8 EDUCATION is currently generating about 0.05 per unit of volatility. If you would invest 55.00 in G8 EDUCATION on August 25, 2024 and sell it today you would earn a total of 25.00 from holding G8 EDUCATION or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. G8 EDUCATION
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| G8 EDUCATION |
COMINTL BANK and G8 EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and G8 EDUCATION
The main advantage of trading using opposite COMINTL BANK and G8 EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK position performs unexpectedly, G8 EDUCATION 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 G8 EDUCATION will offset losses from the drop in G8 EDUCATION's long position.| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
| G8 EDUCATION vs. Apple Inc | G8 EDUCATION vs. Apple Inc | G8 EDUCATION vs. Apple Inc | G8 EDUCATION vs. Apple Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |