Correlation Between Globe Trade and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both Globe Trade and COMINTL BANK 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 Globe Trade and COMINTL BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and COMINTL BANK ADR1, you can compare the effects of market volatilities on Globe Trade and COMINTL BANK 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 Globe Trade with a short position of COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and COMINTL BANK.
Diversification Opportunities for Globe Trade and COMINTL BANK
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Globe and COMINTL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 and Globe Trade 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 Globe Trade Centre are associated (or correlated) with COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of Globe Trade i.e., Globe Trade and COMINTL BANK go up and down completely randomly.
Pair Corralation between Globe Trade and COMINTL BANK
If you would invest 125.00 in COMINTL BANK ADR1 on August 30, 2024 and sell it today you would earn a total of 1.00 from holding COMINTL BANK ADR1 or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. COMINTL BANK ADR1
Performance |
| Timeline |
| Globe Trade Centre |
| COMINTL BANK ADR1 |
Globe Trade and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and COMINTL BANK
The main advantage of trading using opposite Globe Trade and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| Globe Trade vs. Gol Intelligent Airlines | Globe Trade vs. AEGEAN AIRLINES | Globe Trade vs. American Airlines Group | Globe Trade vs. Sabra Health Care |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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