Correlation Between Ichitan Group and Inoue Rubber
Can any of the company-specific risk be diversified away by investing in both Ichitan Group and Inoue 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 Ichitan Group and Inoue Rubber 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 Inoue Rubber Public, you can compare the effects of market volatilities on Ichitan Group and Inoue 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 Ichitan Group with a short position of Inoue Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichitan Group and Inoue Rubber.
Diversification Opportunities for Ichitan Group and Inoue Rubber
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ichitan and Inoue is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ichitan Group Public and Inoue Rubber Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inoue Rubber 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 Inoue Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inoue Rubber Public has no effect on the direction of Ichitan Group i.e., Ichitan Group and Inoue Rubber go up and down completely randomly.
Pair Corralation between Ichitan Group and Inoue Rubber
Assuming the 90 days trading horizon Ichitan Group Public is expected to under-perform the Inoue Rubber. In addition to that, Ichitan Group is 2.4 times more volatile than Inoue Rubber Public. It trades about -0.05 of its total potential returns per unit of risk. Inoue Rubber Public is currently generating about 0.0 per unit of volatility. If you would invest 1,410 in Inoue Rubber Public on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Inoue Rubber Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ichitan Group Public vs. Inoue Rubber Public
Performance |
| Timeline |
| Ichitan Group Public |
| Inoue Rubber Public |
Ichitan Group and Inoue Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ichitan Group and Inoue Rubber
The main advantage of trading using opposite Ichitan Group and Inoue Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichitan Group position performs unexpectedly, Inoue 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 Inoue Rubber will offset losses from the drop in Inoue Rubber's long position.| Ichitan Group vs. Carabao Group Public | Ichitan Group vs. Taokaenoi Food Marketing | Ichitan Group vs. Home Product Center | Ichitan Group vs. Thai Union Group |
| Inoue Rubber vs. TRC Construction Public | Inoue Rubber vs. Bangkok Expressway and | Inoue Rubber vs. Lohakit Metal Public | Inoue Rubber vs. Gunkul Engineering Public |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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