Correlation Between OAKTRSPECLENDNEW and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and SANOK RUBBER 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 OAKTRSPECLENDNEW and SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and SANOK RUBBER ZY, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and SANOK RUBBER 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 OAKTRSPECLENDNEW with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and SANOK RUBBER.
Diversification Opportunities for OAKTRSPECLENDNEW and SANOK RUBBER
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OAKTRSPECLENDNEW and SANOK is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and SANOK RUBBER go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and SANOK RUBBER
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to under-perform the SANOK RUBBER. But the stock apears to be less risky and, when comparing its historical volatility, OAKTRSPECLENDNEW is 2.01 times less risky than SANOK RUBBER. The stock trades about -0.03 of its potential returns per unit of risk. The SANOK RUBBER ZY is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 406.00 in SANOK RUBBER ZY on September 20, 2024 and sell it today you would earn a total of 50.00 from holding SANOK RUBBER ZY or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. SANOK RUBBER ZY
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| SANOK RUBBER ZY |
OAKTRSPECLENDNEW and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and SANOK RUBBER
The main advantage of trading using opposite OAKTRSPECLENDNEW and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| OAKTRSPECLENDNEW vs. SUN ART RETAIL | OAKTRSPECLENDNEW vs. Carsales | OAKTRSPECLENDNEW vs. Corporate Office Properties | OAKTRSPECLENDNEW vs. MARKET VECTR RETAIL |
| SANOK RUBBER vs. KENEDIX OFFICE INV | SANOK RUBBER vs. OAKTRSPECLENDNEW | SANOK RUBBER vs. NURAN WIRELESS INC | SANOK RUBBER vs. Magic Software Enterprises |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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