Correlation Between Comba Telecom and Oji Holdings
Can any of the company-specific risk be diversified away by investing in both Comba Telecom and Oji Holdings 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 Oji Holdings 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 Oji Holdings, you can compare the effects of market volatilities on Comba Telecom and Oji Holdings 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 Oji Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and Oji Holdings.
Diversification Opportunities for Comba Telecom and Oji Holdings
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Comba and Oji is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and Oji Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oji Holdings 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 Oji Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oji Holdings has no effect on the direction of Comba Telecom i.e., Comba Telecom and Oji Holdings go up and down completely randomly.
Pair Corralation between Comba Telecom and Oji Holdings
Assuming the 90 days trading horizon Comba Telecom Systems is expected to under-perform the Oji Holdings. In addition to that, Comba Telecom is 3.85 times more volatile than Oji Holdings. It trades about -0.14 of its total potential returns per unit of risk. Oji Holdings is currently generating about 0.1 per unit of volatility. If you would invest 338.00 in Oji Holdings on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Oji Holdings or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. Oji Holdings
Performance |
| Timeline |
| Comba Telecom Systems |
| Oji Holdings |
Comba Telecom and Oji Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and Oji Holdings
The main advantage of trading using opposite Comba Telecom and Oji Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom position performs unexpectedly, Oji Holdings 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 Oji Holdings will offset losses from the drop in Oji Holdings' long position.| Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Microsoft |
| Oji Holdings vs. UPM Kymmene Oyj | Oji Holdings vs. STORA ENSO OYJ | Oji Holdings vs. Stora Enso Oyj | Oji Holdings vs. Suzano SA |
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
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |