Correlation Between Comba Telecom and FARM 51
Can any of the company-specific risk be diversified away by investing in both Comba Telecom and FARM 51 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 FARM 51 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 FARM 51 GROUP, you can compare the effects of market volatilities on Comba Telecom and FARM 51 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 FARM 51. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and FARM 51.
Diversification Opportunities for Comba Telecom and FARM 51
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Comba and FARM is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and FARM 51 GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FARM 51 GROUP 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 FARM 51. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FARM 51 GROUP has no effect on the direction of Comba Telecom i.e., Comba Telecom and FARM 51 go up and down completely randomly.
Pair Corralation between Comba Telecom and FARM 51
Assuming the 90 days trading horizon Comba Telecom Systems is expected to under-perform the FARM 51. In addition to that, Comba Telecom is 1.94 times more volatile than FARM 51 GROUP. It trades about -0.02 of its total potential returns per unit of risk. FARM 51 GROUP is currently generating about -0.03 per unit of volatility. If you would invest 323.00 in FARM 51 GROUP on October 31, 2024 and sell it today you would lose (24.00) from holding FARM 51 GROUP or give up 7.43% 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. FARM 51 GROUP
Performance |
| Timeline |
| Comba Telecom Systems |
| FARM 51 GROUP |
Comba Telecom and FARM 51 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and FARM 51
The main advantage of trading using opposite Comba Telecom and FARM 51 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom position performs unexpectedly, FARM 51 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 FARM 51 will offset losses from the drop in FARM 51's long position.| Comba Telecom vs. Selective Insurance Group | Comba Telecom vs. Reinsurance Group of | Comba Telecom vs. Zurich Insurance Group | Comba Telecom vs. SLR Investment Corp |
| FARM 51 vs. Eagle Materials | FARM 51 vs. The Yokohama Rubber | FARM 51 vs. Altair Engineering | FARM 51 vs. Delta Air Lines |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets |