Correlation Between Comba Telecom and Focus Home
Can any of the company-specific risk be diversified away by investing in both Comba Telecom and Focus Home 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 Focus Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and Focus Home Interactive, you can compare the effects of market volatilities on Comba Telecom and Focus Home 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 Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and Focus Home.
Diversification Opportunities for Comba Telecom and Focus Home
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Comba and Focus is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive 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 Systems are associated (or correlated) with Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of Comba Telecom i.e., Comba Telecom and Focus Home go up and down completely randomly.
Pair Corralation between Comba Telecom and Focus Home
Assuming the 90 days trading horizon Comba Telecom Systems is expected to generate 0.61 times more return on investment than Focus Home. However, Comba Telecom Systems is 1.64 times less risky than Focus Home. It trades about -0.22 of its potential returns per unit of risk. Focus Home Interactive is currently generating about -0.28 per unit of risk. If you would invest 13.00 in Comba Telecom Systems on November 7, 2024 and sell it today you would lose (1.00) from holding Comba Telecom Systems or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. Focus Home Interactive
Performance |
| Timeline |
| Comba Telecom Systems |
| Focus Home Interactive |
Comba Telecom and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and Focus Home
The main advantage of trading using opposite Comba Telecom and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's long position.| Comba Telecom vs. TYSON FOODS A | Comba Telecom vs. Nomad Foods | Comba Telecom vs. PLANT VEDA FOODS | Comba Telecom vs. PATTIES FOODS |
| Focus Home vs. Nintendo Co | Focus Home vs. Nintendo Co | Focus Home vs. Sea Limited | Focus Home vs. Electronic Arts |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |