Correlation Between Intermedical Care and Yong Concrete
Can any of the company-specific risk be diversified away by investing in both Intermedical Care and Yong Concrete 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 Intermedical Care and Yong Concrete into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermedical Care and and Yong Concrete PCL, you can compare the effects of market volatilities on Intermedical Care and Yong Concrete 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 Intermedical Care with a short position of Yong Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermedical Care and Yong Concrete.
Diversification Opportunities for Intermedical Care and Yong Concrete
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intermedical and Yong is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Intermedical Care and and Yong Concrete PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yong Concrete PCL and Intermedical Care 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 Intermedical Care and are associated (or correlated) with Yong Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yong Concrete PCL has no effect on the direction of Intermedical Care i.e., Intermedical Care and Yong Concrete go up and down completely randomly.
Pair Corralation between Intermedical Care and Yong Concrete
Assuming the 90 days trading horizon Intermedical Care and is expected to generate 0.47 times more return on investment than Yong Concrete. However, Intermedical Care and is 2.13 times less risky than Yong Concrete. It trades about -0.22 of its potential returns per unit of risk. Yong Concrete PCL is currently generating about -0.24 per unit of risk. If you would invest 525.00 in Intermedical Care and on August 30, 2024 and sell it today you would lose (31.00) from holding Intermedical Care and or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermedical Care and vs. Yong Concrete PCL
Performance |
| Timeline |
| Intermedical Care |
| Yong Concrete PCL |
Intermedical Care and Yong Concrete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermedical Care and Yong Concrete
The main advantage of trading using opposite Intermedical Care and Yong Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermedical Care position performs unexpectedly, Yong Concrete 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 Yong Concrete will offset losses from the drop in Yong Concrete's long position.| Intermedical Care vs. Yong Concrete PCL | Intermedical Care vs. Exotic Food Public | Intermedical Care vs. SCG PACKAGING PCL NVDR | Intermedical Care vs. CK Power Public |
| Yong Concrete vs. Wave Entertainment Public | Yong Concrete vs. Vibhavadi Medical Center | Yong Concrete vs. TPI Polene Public | Yong Concrete vs. Asia Green Energy |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |