Correlation Between Comba Telecom and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both Comba Telecom and CONAGRA FOODS 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 CONAGRA FOODS 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 CONAGRA FOODS, you can compare the effects of market volatilities on Comba Telecom and CONAGRA FOODS 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 CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and CONAGRA FOODS.
Diversification Opportunities for Comba Telecom and CONAGRA FOODS
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Comba and CONAGRA is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA FOODS 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 CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of Comba Telecom i.e., Comba Telecom and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between Comba Telecom and CONAGRA FOODS
Assuming the 90 days trading horizon Comba Telecom Systems is expected to under-perform the CONAGRA FOODS. In addition to that, Comba Telecom is 2.37 times more volatile than CONAGRA FOODS. It trades about -0.13 of its total potential returns per unit of risk. CONAGRA FOODS is currently generating about -0.11 per unit of volatility. If you would invest 2,658 in CONAGRA FOODS on October 16, 2024 and sell it today you would lose (74.00) from holding CONAGRA FOODS or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Comba Telecom Systems vs. CONAGRA FOODS
Performance |
| Timeline |
| Comba Telecom Systems |
| CONAGRA FOODS |
Comba Telecom and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and CONAGRA FOODS
The main advantage of trading using opposite Comba Telecom and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom position performs unexpectedly, CONAGRA FOODS 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.| Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc |
| CONAGRA FOODS vs. Alfa Financial Software | CONAGRA FOODS vs. PKSHA TECHNOLOGY INC | CONAGRA FOODS vs. MAGNUM MINING EXP | CONAGRA FOODS vs. Sunny Optical Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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