Correlation Between Elcom Technology and CEO Group
Can any of the company-specific risk be diversified away by investing in both Elcom Technology and CEO Group 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 CEO Group 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 CEO Group JSC, you can compare the effects of market volatilities on Elcom Technology and CEO Group 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 CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom Technology and CEO Group.
Diversification Opportunities for Elcom Technology and CEO Group
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elcom and CEO is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Elcom Technology Communication and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC 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 CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of Elcom Technology i.e., Elcom Technology and CEO Group go up and down completely randomly.
Pair Corralation between Elcom Technology and CEO Group
Assuming the 90 days trading horizon Elcom Technology Communications is expected to generate 0.86 times more return on investment than CEO Group. However, Elcom Technology Communications is 1.16 times less risky than CEO Group. It trades about 0.07 of its potential returns per unit of risk. CEO Group JSC is currently generating about -0.16 per unit of risk. If you would invest 2,730,000 in Elcom Technology Communications on November 3, 2024 and sell it today you would earn a total of 55,000 from holding Elcom Technology Communications or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elcom Technology Communication vs. CEO Group JSC
Performance |
| Timeline |
| Elcom Technology Com |
| CEO Group JSC |
Elcom Technology and CEO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom Technology and CEO Group
The main advantage of trading using opposite Elcom Technology and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom Technology position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.| Elcom Technology vs. Ducgiang Chemicals Detergent | Elcom Technology vs. Asia Commercial Bank | Elcom Technology vs. Hochiminh City Metal | Elcom Technology vs. BIDV Insurance Corp |
| CEO Group vs. Vietnam Technological And | CEO Group vs. Tng Investment And | CEO Group vs. Hoang Huy Investment | CEO Group vs. Tien Giang Investment |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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