Correlation Between Global Electrical and COMA 18
Can any of the company-specific risk be diversified away by investing in both Global Electrical and COMA 18 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 Global Electrical and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Electrical Technology and COMA 18 JSC, you can compare the effects of market volatilities on Global Electrical and COMA 18 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 Global Electrical with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Electrical and COMA 18.
Diversification Opportunities for Global Electrical and COMA 18
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and COMA is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Global Electrical Technology and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 JSC and Global Electrical 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 Global Electrical Technology are associated (or correlated) with COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of Global Electrical i.e., Global Electrical and COMA 18 go up and down completely randomly.
Pair Corralation between Global Electrical and COMA 18
Assuming the 90 days trading horizon Global Electrical is expected to generate 2.64 times less return on investment than COMA 18. In addition to that, Global Electrical is 1.7 times more volatile than COMA 18 JSC. It trades about 0.04 of its total potential returns per unit of risk. COMA 18 JSC is currently generating about 0.17 per unit of volatility. If you would invest 510,000 in COMA 18 JSC on September 3, 2024 and sell it today you would earn a total of 397,000 from holding COMA 18 JSC or generate 77.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.95% |
| Values | Daily Returns |
Global Electrical Technology vs. COMA 18 JSC
Performance |
| Timeline |
| Global Electrical |
| COMA 18 JSC |
Global Electrical and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Electrical and COMA 18
The main advantage of trading using opposite Global Electrical and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Electrical position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.| Global Electrical vs. IDJ FINANCIAL | Global Electrical vs. PVI Reinsurance Corp | Global Electrical vs. Fecon Mining JSC | Global Electrical vs. Industrial Urban Development |
| COMA 18 vs. Vietnam JSCmmercial Bank | COMA 18 vs. Saigon Viendong Technology | COMA 18 vs. Pha Lai Thermal | COMA 18 vs. Telecoms Informatics JSC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |