Correlation Between Ichitan Group and Interhides Public
Can any of the company-specific risk be diversified away by investing in both Ichitan Group and Interhides Public 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 Ichitan Group and Interhides Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ichitan Group Public and Interhides Public, you can compare the effects of market volatilities on Ichitan Group and Interhides Public 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 Ichitan Group with a short position of Interhides Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichitan Group and Interhides Public.
Diversification Opportunities for Ichitan Group and Interhides Public
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ichitan and Interhides is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ichitan Group Public and Interhides Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interhides Public and Ichitan Group 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 Ichitan Group Public are associated (or correlated) with Interhides Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interhides Public has no effect on the direction of Ichitan Group i.e., Ichitan Group and Interhides Public go up and down completely randomly.
Pair Corralation between Ichitan Group and Interhides Public
Assuming the 90 days trading horizon Ichitan Group Public is expected to generate 0.74 times more return on investment than Interhides Public. However, Ichitan Group Public is 1.35 times less risky than Interhides Public. It trades about -0.03 of its potential returns per unit of risk. Interhides Public is currently generating about -0.22 per unit of risk. If you would invest 1,499 in Ichitan Group Public on September 3, 2024 and sell it today you would lose (19.00) from holding Ichitan Group Public or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ichitan Group Public vs. Interhides Public
Performance |
| Timeline |
| Ichitan Group Public |
| Interhides Public |
Ichitan Group and Interhides Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ichitan Group and Interhides Public
The main advantage of trading using opposite Ichitan Group and Interhides Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichitan Group position performs unexpectedly, Interhides Public 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 Interhides Public will offset losses from the drop in Interhides Public's long position.| Ichitan Group vs. Airports of Thailand | Ichitan Group vs. PTT Public | Ichitan Group vs. Bangkok Dusit Medical | Ichitan Group vs. Kasikornbank Public |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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