Correlation Between Agriculture Printing and Song Hong
Can any of the company-specific risk be diversified away by investing in both Agriculture Printing and Song Hong 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 Agriculture Printing and Song Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agriculture Printing and and Song Hong Aluminum, you can compare the effects of market volatilities on Agriculture Printing and Song Hong 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 Agriculture Printing with a short position of Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agriculture Printing and Song Hong.
Diversification Opportunities for Agriculture Printing and Song Hong
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agriculture and Song is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Agriculture Printing and and Song Hong Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Aluminum and Agriculture Printing 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 Agriculture Printing and are associated (or correlated) with Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Aluminum has no effect on the direction of Agriculture Printing i.e., Agriculture Printing and Song Hong go up and down completely randomly.
Pair Corralation between Agriculture Printing and Song Hong
Assuming the 90 days trading horizon Agriculture Printing and is expected to generate 0.68 times more return on investment than Song Hong. However, Agriculture Printing and is 1.47 times less risky than Song Hong. It trades about 0.09 of its potential returns per unit of risk. Song Hong Aluminum is currently generating about -0.07 per unit of risk. If you would invest 5,440,000 in Agriculture Printing and on September 13, 2024 and sell it today you would earn a total of 150,000 from holding Agriculture Printing and or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Agriculture Printing and vs. Song Hong Aluminum
Performance |
| Timeline |
| Agriculture Printing and |
| Song Hong Aluminum |
Agriculture Printing and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agriculture Printing and Song Hong
The main advantage of trading using opposite Agriculture Printing and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agriculture Printing position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong's long position.| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing vs. Alphanam ME |
| Song Hong vs. FIT INVEST JSC | Song Hong vs. Damsan JSC | Song Hong vs. An Phat Plastic | Song Hong vs. Alphanam ME |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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