Correlation Between COMINTL BANK and CAREER EDUCATION
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK and CAREER 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 CAREER 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 CAREER EDUCATION, you can compare the effects of market volatilities on COMINTL BANK and CAREER 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 CAREER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and CAREER EDUCATION.
Diversification Opportunities for COMINTL BANK and CAREER EDUCATION
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between COMINTL and CAREER is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and CAREER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAREER 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 CAREER EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAREER EDUCATION has no effect on the direction of COMINTL BANK i.e., COMINTL BANK and CAREER EDUCATION go up and down completely randomly.
Pair Corralation between COMINTL BANK and CAREER EDUCATION
Assuming the 90 days trading horizon COMINTL BANK is expected to generate 6.68 times less return on investment than CAREER EDUCATION. But when comparing it to its historical volatility, COMINTL BANK ADR1 is 1.51 times less risky than CAREER EDUCATION. It trades about 0.08 of its potential returns per unit of risk. CAREER EDUCATION is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,950 in CAREER EDUCATION on August 29, 2024 and sell it today you would earn a total of 670.00 from holding CAREER EDUCATION or generate 34.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. CAREER EDUCATION
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| CAREER EDUCATION |
COMINTL BANK and CAREER EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and CAREER EDUCATION
The main advantage of trading using opposite COMINTL BANK and CAREER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK position performs unexpectedly, CAREER 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 CAREER EDUCATION will offset losses from the drop in CAREER 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 |
| CAREER EDUCATION vs. Apple Inc | CAREER EDUCATION vs. Apple Inc | CAREER EDUCATION vs. Microsoft | CAREER EDUCATION vs. Microsoft |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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