Correlation Between COMINTL BANK and Coor Service
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK and Coor Service 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 Coor Service 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 Coor Service Management, you can compare the effects of market volatilities on COMINTL BANK and Coor Service 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 Coor Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and Coor Service.
Diversification Opportunities for COMINTL BANK and Coor Service
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between COMINTL and Coor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management 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 Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of COMINTL BANK i.e., COMINTL BANK and Coor Service go up and down completely randomly.
Pair Corralation between COMINTL BANK and Coor Service
Assuming the 90 days trading horizon COMINTL BANK ADR1 is expected to under-perform the Coor Service. But the stock apears to be less risky and, when comparing its historical volatility, COMINTL BANK ADR1 is 1.93 times less risky than Coor Service. The stock trades about -0.13 of its potential returns per unit of risk. The Coor Service Management is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Coor Service Management on December 9, 2024 and sell it today you would earn a total of 33.00 from holding Coor Service Management or generate 11.87% 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. Coor Service Management
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| Coor Service Management |
COMINTL BANK and Coor Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and Coor Service
The main advantage of trading using opposite COMINTL BANK and Coor Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK position performs unexpectedly, Coor Service 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 Coor Service will offset losses from the drop in Coor Service's long position.| COMINTL BANK vs. PRECISION DRILLING P | COMINTL BANK vs. Computershare Limited | COMINTL BANK vs. United Internet AG | COMINTL BANK vs. COMPUTERSHARE |
| Coor Service vs. AviChina Industry Technology | Coor Service vs. Kaufman Broad SA | Coor Service vs. Easy Software AG | Coor Service vs. GOLD ROAD RES |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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