Correlation Between Comba Telecom and G III
Can any of the company-specific risk be diversified away by investing in both Comba Telecom and G III 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 G III 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 G III Apparel Group, you can compare the effects of market volatilities on Comba Telecom and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and G III.
Diversification Opportunities for Comba Telecom and G III
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comba and GI4 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Comba Telecom i.e., Comba Telecom and G III go up and down completely randomly.
Pair Corralation between Comba Telecom and G III
Assuming the 90 days trading horizon Comba Telecom is expected to generate 1.98 times less return on investment than G III. In addition to that, Comba Telecom is 1.59 times more volatile than G III Apparel Group. It trades about 0.02 of its total potential returns per unit of risk. G III Apparel Group is currently generating about 0.08 per unit of volatility. If you would invest 1,220 in G III Apparel Group on September 13, 2024 and sell it today you would earn a total of 2,060 from holding G III Apparel Group or generate 168.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. G III Apparel Group
Performance |
| Timeline |
| Comba Telecom Systems |
| G III Apparel |
Comba Telecom and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and G III
The main advantage of trading using opposite Comba Telecom and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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