Correlation Between COMBA TELECOM and GLOBUS MEDICAL
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM and GLOBUS MEDICAL 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 GLOBUS MEDICAL 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 GLOBUS MEDICAL A, you can compare the effects of market volatilities on COMBA TELECOM and GLOBUS MEDICAL 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 GLOBUS MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and GLOBUS MEDICAL.
Diversification Opportunities for COMBA TELECOM and GLOBUS MEDICAL
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COMBA and GLOBUS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A 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 GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of COMBA TELECOM i.e., COMBA TELECOM and GLOBUS MEDICAL go up and down completely randomly.
Pair Corralation between COMBA TELECOM and GLOBUS MEDICAL
Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to generate 1.95 times more return on investment than GLOBUS MEDICAL. However, COMBA TELECOM is 1.95 times more volatile than GLOBUS MEDICAL A. It trades about 0.08 of its potential returns per unit of risk. GLOBUS MEDICAL A is currently generating about 0.14 per unit of risk. If you would invest 12.00 in COMBA TELECOM SYST on October 30, 2024 and sell it today you would earn a total of 1.00 from holding COMBA TELECOM SYST or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. GLOBUS MEDICAL A
Performance |
| Timeline |
| COMBA TELECOM SYST |
| GLOBUS MEDICAL A |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
COMBA TELECOM and GLOBUS MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and GLOBUS MEDICAL
The main advantage of trading using opposite COMBA TELECOM and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM position performs unexpectedly, GLOBUS MEDICAL 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.| COMBA TELECOM vs. Summit Hotel Properties | COMBA TELECOM vs. ARDAGH METAL PACDL 0001 | COMBA TELECOM vs. Meli Hotels International | COMBA TELECOM vs. AMAG Austria Metall |
| GLOBUS MEDICAL vs. Ross Stores | GLOBUS MEDICAL vs. BJs Wholesale Club | GLOBUS MEDICAL vs. Virtu Financial | GLOBUS MEDICAL vs. Sun Life Financial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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