Correlation Between South Basic and COMA 18
Can any of the company-specific risk be diversified away by investing in both South Basic and COMA 18 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 South Basic and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Basic Chemicals and COMA 18 JSC, you can compare the effects of market volatilities on South Basic and COMA 18 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 South Basic with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Basic and COMA 18.
Diversification Opportunities for South Basic and COMA 18
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between South and COMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding South Basic Chemicals and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 JSC and South Basic 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 South Basic Chemicals are associated (or correlated) with COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of South Basic i.e., South Basic and COMA 18 go up and down completely randomly.
Pair Corralation between South Basic and COMA 18
If you would invest 4,140,000 in South Basic Chemicals on October 7, 2024 and sell it today you would earn a total of 450,000 from holding South Basic Chemicals or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
South Basic Chemicals vs. COMA 18 JSC
Performance |
| Timeline |
| South Basic Chemicals |
| COMA 18 JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
South Basic and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Basic and COMA 18
The main advantage of trading using opposite South Basic and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Basic position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.| South Basic vs. Construction JSC No5 | South Basic vs. Vietnam Technological And | South Basic vs. VTC Telecommunications JSC | South Basic vs. Petrovietnam Technical Services |
| COMA 18 vs. Agriculture Printing and | COMA 18 vs. Pacific Petroleum Transportation | COMA 18 vs. PetroVietnam Transportation Corp | COMA 18 vs. Construction JSC No5 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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