Correlation Between South Basic and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both South Basic and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on South Basic and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Basic and POST TELECOMMU.
Diversification Opportunities for South Basic and POST TELECOMMU
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between South and POST is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding South Basic Chemicals and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of South Basic i.e., South Basic and POST TELECOMMU go up and down completely randomly.
Pair Corralation between South Basic and POST TELECOMMU
Assuming the 90 days trading horizon South Basic Chemicals is expected to under-perform the POST TELECOMMU. In addition to that, South Basic is 2.09 times more volatile than POST TELECOMMU. It trades about -0.07 of its total potential returns per unit of risk. POST TELECOMMU is currently generating about -0.06 per unit of volatility. If you would invest 5,600,000 in POST TELECOMMU on September 2, 2024 and sell it today you would lose (2,570,000) from holding POST TELECOMMU or give up 45.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.65% |
| Values | Daily Returns |
South Basic Chemicals vs. POST TELECOMMU
Performance |
| Timeline |
| South Basic Chemicals |
| POST TELECOMMU |
South Basic and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Basic and POST TELECOMMU
The main advantage of trading using opposite South Basic and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Basic position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| South Basic vs. Vu Dang Investment | South Basic vs. Thanh Dat Investment | South Basic vs. DOMESCO Medical Import | South Basic vs. Tien Giang Investment |
| POST TELECOMMU vs. FIT INVEST JSC | POST TELECOMMU vs. Damsan JSC | POST TELECOMMU vs. An Phat Plastic | POST TELECOMMU vs. Alphanam ME |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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