Correlation Between COMINTL BANK and Brockhaus Capital
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK and Brockhaus Capital 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 Brockhaus Capital 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 Brockhaus Capital Management, you can compare the effects of market volatilities on COMINTL BANK and Brockhaus Capital 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 Brockhaus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and Brockhaus Capital.
Diversification Opportunities for COMINTL BANK and Brockhaus Capital
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between COMINTL and Brockhaus is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and Brockhaus Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brockhaus Capital 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 Brockhaus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brockhaus Capital has no effect on the direction of COMINTL BANK i.e., COMINTL BANK and Brockhaus Capital go up and down completely randomly.
Pair Corralation between COMINTL BANK and Brockhaus Capital
Assuming the 90 days trading horizon COMINTL BANK ADR1 is expected to generate 1.21 times more return on investment than Brockhaus Capital. However, COMINTL BANK is 1.21 times more volatile than Brockhaus Capital Management. It trades about 0.1 of its potential returns per unit of risk. Brockhaus Capital Management is currently generating about -0.23 per unit of risk. If you would invest 124.00 in COMINTL BANK ADR1 on August 25, 2024 and sell it today you would earn a total of 6.00 from holding COMINTL BANK ADR1 or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. Brockhaus Capital Management
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| Brockhaus Capital |
COMINTL BANK and Brockhaus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and Brockhaus Capital
The main advantage of trading using opposite COMINTL BANK and Brockhaus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK position performs unexpectedly, Brockhaus Capital 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 Brockhaus Capital will offset losses from the drop in Brockhaus Capital'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 |
| Brockhaus Capital vs. The Bank of | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. NMI Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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