Correlation Between Casio Computer and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both Casio Computer and Jiangsu Expressway 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 Casio Computer and Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casio Computer Co and Jiangsu Expressway Co, you can compare the effects of market volatilities on Casio Computer and Jiangsu Expressway 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 Casio Computer with a short position of Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casio Computer and Jiangsu Expressway.
Diversification Opportunities for Casio Computer and Jiangsu Expressway
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Casio and Jiangsu is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer Co and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway and Casio Computer 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 Casio Computer Co are associated (or correlated) with Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Casio Computer i.e., Casio Computer and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Casio Computer and Jiangsu Expressway
Assuming the 90 days horizon Casio Computer Co is expected to generate 0.65 times more return on investment than Jiangsu Expressway. However, Casio Computer Co is 1.53 times less risky than Jiangsu Expressway. It trades about 0.07 of its potential returns per unit of risk. Jiangsu Expressway Co is currently generating about 0.04 per unit of risk. If you would invest 8,139 in Casio Computer Co on December 11, 2024 and sell it today you would earn a total of 437.00 from holding Casio Computer Co or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casio Computer Co vs. Jiangsu Expressway Co
Performance |
| Timeline |
| Casio Computer |
| Jiangsu Expressway |
Casio Computer and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casio Computer and Jiangsu Expressway
The main advantage of trading using opposite Casio Computer and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casio Computer position performs unexpectedly, Jiangsu Expressway 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 Jiangsu Expressway will offset losses from the drop in Jiangsu Expressway's long position.| Casio Computer vs. Apple Inc | Casio Computer vs. Sharp | Casio Computer vs. TCL Electronics Holdings | Casio Computer vs. Xiaomi Corp |
| Jiangsu Expressway vs. Malaga Financial | Jiangsu Expressway vs. Summit Bank Group | Jiangsu Expressway vs. Qorvo Inc | Jiangsu Expressway vs. Globalfoundries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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