Correlation Between II Group and Com7 PCL
Can any of the company-specific risk be diversified away by investing in both II Group and Com7 PCL 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 II Group and Com7 PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between II Group Public and Com7 PCL, you can compare the effects of market volatilities on II Group and Com7 PCL 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 II Group with a short position of Com7 PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of II Group and Com7 PCL.
Diversification Opportunities for II Group and Com7 PCL
Very good diversification
The 3 months correlation between IIG and Com7 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding II Group Public and Com7 PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com7 PCL and II 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 II Group Public are associated (or correlated) with Com7 PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com7 PCL has no effect on the direction of II Group i.e., II Group and Com7 PCL go up and down completely randomly.
Pair Corralation between II Group and Com7 PCL
Assuming the 90 days trading horizon II Group Public is expected to generate 22.38 times more return on investment than Com7 PCL. However, II Group is 22.38 times more volatile than Com7 PCL. It trades about 0.04 of its potential returns per unit of risk. Com7 PCL is currently generating about 0.01 per unit of risk. If you would invest 1,950 in II Group Public on September 1, 2024 and sell it today you would lose (1,410) from holding II Group Public or give up 72.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
II Group Public vs. Com7 PCL
Performance |
| Timeline |
| II Group Public |
| Com7 PCL |
II Group and Com7 PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with II Group and Com7 PCL
The main advantage of trading using opposite II Group and Com7 PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if II Group position performs unexpectedly, Com7 PCL 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 Com7 PCL will offset losses from the drop in Com7 PCL's long position.| II Group vs. Com7 PCL | II Group vs. Beryl 8 Plus | II Group vs. Hana Microelectronics Public | II Group vs. Jay Mart 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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