Correlation Between COMBA TELECOM and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM and FUYO GENERAL 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 COMBA TELECOM and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMBA TELECOM SYST and FUYO GENERAL LEASE, you can compare the effects of market volatilities on COMBA TELECOM and FUYO GENERAL 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 COMBA TELECOM with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and FUYO GENERAL.
Diversification Opportunities for COMBA TELECOM and FUYO GENERAL
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COMBA and FUYO is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and COMBA TELECOM 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 COMBA TELECOM SYST are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of COMBA TELECOM i.e., COMBA TELECOM and FUYO GENERAL go up and down completely randomly.
Pair Corralation between COMBA TELECOM and FUYO GENERAL
Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to generate 1.66 times more return on investment than FUYO GENERAL. However, COMBA TELECOM is 1.66 times more volatile than FUYO GENERAL LEASE. It trades about 0.03 of its potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.02 per unit of risk. If you would invest 15.00 in COMBA TELECOM SYST on November 28, 2024 and sell it today you would earn a total of 3.00 from holding COMBA TELECOM SYST or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| COMBA TELECOM SYST |
| FUYO GENERAL LEASE |
COMBA TELECOM and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and FUYO GENERAL
The main advantage of trading using opposite COMBA TELECOM and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| COMBA TELECOM vs. AGNC Investment Corp | COMBA TELECOM vs. SLR Investment Corp | COMBA TELECOM vs. Carsales | COMBA TELECOM vs. CODERE ONLINE LUX |
| FUYO GENERAL vs. Sunny Optical Technology | FUYO GENERAL vs. MPH Health Care | FUYO GENERAL vs. Addtech AB | FUYO GENERAL vs. Darden Restaurants |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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