Correlation Between Inoue Rubber and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Inoue Rubber and BPS TECHNOLOGY 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 Inoue Rubber and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inoue Rubber Public and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Inoue Rubber and BPS TECHNOLOGY 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 Inoue Rubber with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inoue Rubber and BPS TECHNOLOGY.
Diversification Opportunities for Inoue Rubber and BPS TECHNOLOGY
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inoue and BPS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Inoue Rubber Public and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Inoue Rubber 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 Inoue Rubber Public are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Inoue Rubber i.e., Inoue Rubber and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Inoue Rubber and BPS TECHNOLOGY
Assuming the 90 days trading horizon Inoue Rubber Public is expected to generate 0.16 times more return on investment than BPS TECHNOLOGY. However, Inoue Rubber Public is 6.36 times less risky than BPS TECHNOLOGY. It trades about 0.18 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about 0.01 per unit of risk. If you would invest 1,400 in Inoue Rubber Public on October 25, 2024 and sell it today you would earn a total of 20.00 from holding Inoue Rubber Public or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inoue Rubber Public vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Inoue Rubber Public |
| BPS TECHNOLOGY PUBLIC |
Inoue Rubber and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inoue Rubber and BPS TECHNOLOGY
The main advantage of trading using opposite Inoue Rubber and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inoue Rubber position performs unexpectedly, BPS TECHNOLOGY 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Inoue Rubber vs. Hwa Fong Rubber | Inoue Rubber vs. AAPICO Hitech Public | Inoue Rubber vs. Haad Thip Public | Inoue Rubber vs. Goodyear Public |
| BPS TECHNOLOGY vs. S Khonkaen Foods | BPS TECHNOLOGY vs. Globlex Holding Management | BPS TECHNOLOGY vs. Sahamit Machinery Public | BPS TECHNOLOGY vs. JKN Global Media |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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