Correlation Between CMC Investment and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both CMC Investment and Mekong Fisheries 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 CMC Investment and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMC Investment JSC and Mekong Fisheries JSC, you can compare the effects of market volatilities on CMC Investment and Mekong Fisheries 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 CMC Investment with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMC Investment and Mekong Fisheries.
Diversification Opportunities for CMC Investment and Mekong Fisheries
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CMC and Mekong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CMC Investment JSC and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and CMC Investment 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 CMC Investment JSC are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of CMC Investment i.e., CMC Investment and Mekong Fisheries go up and down completely randomly.
Pair Corralation between CMC Investment and Mekong Fisheries
Assuming the 90 days trading horizon CMC Investment JSC is expected to under-perform the Mekong Fisheries. In addition to that, CMC Investment is 1.44 times more volatile than Mekong Fisheries JSC. It trades about -0.38 of its total potential returns per unit of risk. Mekong Fisheries JSC is currently generating about 0.03 per unit of volatility. If you would invest 689,000 in Mekong Fisheries JSC on September 1, 2024 and sell it today you would earn a total of 8,000 from holding Mekong Fisheries JSC or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
CMC Investment JSC vs. Mekong Fisheries JSC
Performance |
| Timeline |
| CMC Investment JSC |
| Mekong Fisheries JSC |
CMC Investment and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMC Investment and Mekong Fisheries
The main advantage of trading using opposite CMC Investment and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMC Investment position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| CMC Investment vs. FIT INVEST JSC | CMC Investment vs. Damsan JSC | CMC Investment vs. An Phat Plastic | CMC Investment vs. Alphanam ME |
| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries vs. Alphanam ME |
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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