Correlation Between Global Electrical and Agriculture Printing
Can any of the company-specific risk be diversified away by investing in both Global Electrical and Agriculture Printing 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 Agriculture Printing 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 Agriculture Printing and, you can compare the effects of market volatilities on Global Electrical and Agriculture Printing 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 Agriculture Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Electrical and Agriculture Printing.
Diversification Opportunities for Global Electrical and Agriculture Printing
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Agriculture is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Global Electrical Technology and Agriculture Printing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Printing and 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 Agriculture Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Printing and has no effect on the direction of Global Electrical i.e., Global Electrical and Agriculture Printing go up and down completely randomly.
Pair Corralation between Global Electrical and Agriculture Printing
Assuming the 90 days trading horizon Global Electrical Technology is expected to generate 3.07 times more return on investment than Agriculture Printing. However, Global Electrical is 3.07 times more volatile than Agriculture Printing and. It trades about 0.04 of its potential returns per unit of risk. Agriculture Printing and is currently generating about -0.1 per unit of risk. If you would invest 2,620,000 in Global Electrical Technology on September 1, 2024 and sell it today you would earn a total of 30,000 from holding Global Electrical Technology or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
Global Electrical Technology vs. Agriculture Printing and
Performance |
| Timeline |
| Global Electrical |
| Agriculture Printing and |
Global Electrical and Agriculture Printing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Electrical and Agriculture Printing
The main advantage of trading using opposite Global Electrical and Agriculture Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Electrical position performs unexpectedly, Agriculture Printing 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 Agriculture Printing will offset losses from the drop in Agriculture Printing's long position.| Global Electrical vs. Song Hong Garment | Global Electrical vs. Alphanam ME | Global Electrical vs. Hochiminh City Metal | Global Electrical vs. Atesco Industrial Cartering |
| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing vs. Alphanam ME |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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