Correlation Between Inoue Rubber and GFPT Public
Can any of the company-specific risk be diversified away by investing in both Inoue Rubber and GFPT Public 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 GFPT Public 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 GFPT Public, you can compare the effects of market volatilities on Inoue Rubber and GFPT Public 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 GFPT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inoue Rubber and GFPT Public.
Diversification Opportunities for Inoue Rubber and GFPT Public
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inoue and GFPT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Inoue Rubber Public and GFPT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFPT 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 GFPT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFPT Public has no effect on the direction of Inoue Rubber i.e., Inoue Rubber and GFPT Public go up and down completely randomly.
Pair Corralation between Inoue Rubber and GFPT Public
Assuming the 90 days trading horizon Inoue Rubber Public is expected to generate 37.87 times more return on investment than GFPT Public. However, Inoue Rubber is 37.87 times more volatile than GFPT Public. It trades about 0.06 of its potential returns per unit of risk. GFPT Public is currently generating about 0.01 per unit of risk. If you would invest 1,300 in Inoue Rubber Public on September 3, 2024 and sell it today you would earn a total of 110.00 from holding Inoue Rubber Public or generate 8.46% 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. GFPT Public
Performance |
| Timeline |
| Inoue Rubber Public |
| GFPT Public |
Inoue Rubber and GFPT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inoue Rubber and GFPT Public
The main advantage of trading using opposite Inoue Rubber and GFPT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inoue Rubber position performs unexpectedly, GFPT Public 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 GFPT Public will offset losses from the drop in GFPT Public'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 |
| GFPT Public vs. Airports of Thailand | GFPT Public vs. PTT Public | GFPT Public vs. Bangkok Dusit Medical | GFPT Public vs. Kasikornbank Public |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |