Correlation Between Elcom Technology and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both Elcom Technology and Atesco Industrial 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 Elcom Technology and Atesco Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elcom Technology Communications and Atesco Industrial Cartering, you can compare the effects of market volatilities on Elcom Technology and Atesco Industrial 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 Elcom Technology with a short position of Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom Technology and Atesco Industrial.
Diversification Opportunities for Elcom Technology and Atesco Industrial
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elcom and Atesco is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Elcom Technology Communication and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial and Elcom Technology 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 Elcom Technology Communications are associated (or correlated) with Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of Elcom Technology i.e., Elcom Technology and Atesco Industrial go up and down completely randomly.
Pair Corralation between Elcom Technology and Atesco Industrial
Assuming the 90 days trading horizon Elcom Technology Communications is expected to under-perform the Atesco Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Elcom Technology Communications is 2.32 times less risky than Atesco Industrial. The stock trades about -0.1 of its potential returns per unit of risk. The Atesco Industrial Cartering is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,150,000 in Atesco Industrial Cartering on December 31, 2024 and sell it today you would earn a total of 250,000 from holding Atesco Industrial Cartering or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Elcom Technology Communication vs. Atesco Industrial Cartering
Performance |
| Timeline |
| Elcom Technology Com |
| Atesco Industrial |
Elcom Technology and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom Technology and Atesco Industrial
The main advantage of trading using opposite Elcom Technology and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom Technology position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| Elcom Technology vs. PetroVietnam Transportation Corp | Elcom Technology vs. Petrolimex Information Technology | Elcom Technology vs. HVC Investment and | Elcom Technology vs. Transport and Industry |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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