Correlation Between I Tail and Klinique Med
Can any of the company-specific risk be diversified away by investing in both I Tail and Klinique Med 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 I Tail and Klinique Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i Tail Corp PCL and The Klinique Med, you can compare the effects of market volatilities on I Tail and Klinique Med 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 I Tail with a short position of Klinique Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Tail and Klinique Med.
Diversification Opportunities for I Tail and Klinique Med
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ITC and Klinique is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding i Tail Corp PCL and The Klinique Med in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klinique Med and I Tail 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 i Tail Corp PCL are associated (or correlated) with Klinique Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klinique Med has no effect on the direction of I Tail i.e., I Tail and Klinique Med go up and down completely randomly.
Pair Corralation between I Tail and Klinique Med
Assuming the 90 days trading horizon i Tail Corp PCL is expected to generate 0.99 times more return on investment than Klinique Med. However, i Tail Corp PCL is 1.01 times less risky than Klinique Med. It trades about 0.0 of its potential returns per unit of risk. The Klinique Med is currently generating about -0.06 per unit of risk. If you would invest 1,850 in i Tail Corp PCL on November 3, 2024 and sell it today you would lose (150.00) from holding i Tail Corp PCL or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
i Tail Corp PCL vs. The Klinique Med
Performance |
| Timeline |
| i Tail Corp |
| Klinique Med |
I Tail and Klinique Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Tail and Klinique Med
The main advantage of trading using opposite I Tail and Klinique Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Tail position performs unexpectedly, Klinique Med 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 Klinique Med will offset losses from the drop in Klinique Med's long position.| I Tail vs. Thai Union Group | I Tail vs. Osotspa Public | I Tail vs. Asian Alliance International | I Tail vs. AP 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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