Correlation Between Cebu Landmasters and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Cebu Landmasters and Integrated Micro 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 Cebu Landmasters and Integrated Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Landmasters and Integrated Micro Electronics, you can compare the effects of market volatilities on Cebu Landmasters and Integrated Micro 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 Cebu Landmasters with a short position of Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Landmasters and Integrated Micro.
Diversification Opportunities for Cebu Landmasters and Integrated Micro
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cebu and Integrated is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Landmasters and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele and Cebu Landmasters 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 Cebu Landmasters are associated (or correlated) with Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Cebu Landmasters i.e., Cebu Landmasters and Integrated Micro go up and down completely randomly.
Pair Corralation between Cebu Landmasters and Integrated Micro
Assuming the 90 days trading horizon Cebu Landmasters is expected to generate 0.44 times more return on investment than Integrated Micro. However, Cebu Landmasters is 2.29 times less risky than Integrated Micro. It trades about 0.06 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.09 per unit of risk. If you would invest 233.00 in Cebu Landmasters on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Cebu Landmasters or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cebu Landmasters vs. Integrated Micro Electronics
Performance |
| Timeline |
| Cebu Landmasters |
| Integrated Micro Ele |
Cebu Landmasters and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Landmasters and Integrated Micro
The main advantage of trading using opposite Cebu Landmasters and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Landmasters position performs unexpectedly, Integrated Micro 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 Integrated Micro will offset losses from the drop in Integrated Micro's long position.| Cebu Landmasters vs. Metro Retail Stores | Cebu Landmasters vs. Philex Mining Corp | Cebu Landmasters vs. Jollibee Foods Corp | Cebu Landmasters vs. Converge Information Communications |
| Integrated Micro vs. Metro Retail Stores | Integrated Micro vs. Crown Asia Chemicals | Integrated Micro vs. Philex Mining Corp | Integrated Micro vs. Globe Telecom |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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