Correlation Between Salee Colour and Business Online
Can any of the company-specific risk be diversified away by investing in both Salee Colour and Business Online 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 Salee Colour and Business Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salee Colour Public and Business Online PCL, you can compare the effects of market volatilities on Salee Colour and Business Online 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 Salee Colour with a short position of Business Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salee Colour and Business Online.
Diversification Opportunities for Salee Colour and Business Online
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salee and Business is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Salee Colour Public and Business Online PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Business Online PCL and Salee Colour 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 Salee Colour Public are associated (or correlated) with Business Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Business Online PCL has no effect on the direction of Salee Colour i.e., Salee Colour and Business Online go up and down completely randomly.
Pair Corralation between Salee Colour and Business Online
Assuming the 90 days trading horizon Salee Colour Public is expected to generate 31.93 times more return on investment than Business Online. However, Salee Colour is 31.93 times more volatile than Business Online PCL. It trades about 0.05 of its potential returns per unit of risk. Business Online PCL is currently generating about -0.09 per unit of risk. If you would invest 154.00 in Salee Colour Public on September 2, 2024 and sell it today you would lose (42.00) from holding Salee Colour Public or give up 27.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salee Colour Public vs. Business Online PCL
Performance |
| Timeline |
| Salee Colour Public |
| Business Online PCL |
Salee Colour and Business Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salee Colour and Business Online
The main advantage of trading using opposite Salee Colour and Business Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salee Colour position performs unexpectedly, Business Online 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 Business Online will offset losses from the drop in Business Online's long position.| Salee Colour vs. CPR Gomu Industrial | Salee Colour vs. BuilderSmart Public | Salee Colour vs. Getabec Public | Salee Colour vs. BGT Public |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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