Correlation Between Telecoms Informatics and Global Electrical
Can any of the company-specific risk be diversified away by investing in both Telecoms Informatics and Global Electrical 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 Telecoms Informatics and Global Electrical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telecoms Informatics JSC and Global Electrical Technology, you can compare the effects of market volatilities on Telecoms Informatics and Global Electrical 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 Telecoms Informatics with a short position of Global Electrical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecoms Informatics and Global Electrical.
Diversification Opportunities for Telecoms Informatics and Global Electrical
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telecoms and Global is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Telecoms Informatics JSC and Global Electrical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Electrical and Telecoms Informatics 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 Telecoms Informatics JSC are associated (or correlated) with Global Electrical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Electrical has no effect on the direction of Telecoms Informatics i.e., Telecoms Informatics and Global Electrical go up and down completely randomly.
Pair Corralation between Telecoms Informatics and Global Electrical
Assuming the 90 days trading horizon Telecoms Informatics JSC is expected to generate 0.46 times more return on investment than Global Electrical. However, Telecoms Informatics JSC is 2.17 times less risky than Global Electrical. It trades about -0.01 of its potential returns per unit of risk. Global Electrical Technology is currently generating about -0.1 per unit of risk. If you would invest 1,270,000 in Telecoms Informatics JSC on August 30, 2024 and sell it today you would lose (20,000) from holding Telecoms Informatics JSC or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
Telecoms Informatics JSC vs. Global Electrical Technology
Performance |
| Timeline |
| Telecoms Informatics JSC |
| Global Electrical |
Telecoms Informatics and Global Electrical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecoms Informatics and Global Electrical
The main advantage of trading using opposite Telecoms Informatics and Global Electrical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecoms Informatics position performs unexpectedly, Global Electrical 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 Global Electrical will offset losses from the drop in Global Electrical's long position.| Telecoms Informatics vs. FIT INVEST JSC | Telecoms Informatics vs. Damsan JSC | Telecoms Informatics vs. An Phat Plastic | Telecoms Informatics vs. APG Securities Joint |
| Global Electrical vs. PetroVietnam Transportation Corp | Global Electrical vs. Travel Investment and | Global Electrical vs. Nam Long Investment | Global Electrical vs. Ba Ria Thermal |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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