Correlation Between Transport International and SBI Holdings
Can any of the company-specific risk be diversified away by investing in both Transport International and SBI Holdings 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 Transport International and SBI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transport International Holdings and SBI Holdings, you can compare the effects of market volatilities on Transport International and SBI Holdings 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 Transport International with a short position of SBI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transport International and SBI Holdings.
Diversification Opportunities for Transport International and SBI Holdings
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transport and SBI is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Transport International Holdin and SBI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Holdings and Transport International 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 Transport International Holdings are associated (or correlated) with SBI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Holdings has no effect on the direction of Transport International i.e., Transport International and SBI Holdings go up and down completely randomly.
Pair Corralation between Transport International and SBI Holdings
Assuming the 90 days horizon Transport International Holdings is expected to under-perform the SBI Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Transport International Holdings is 2.67 times less risky than SBI Holdings. The stock trades about -0.17 of its potential returns per unit of risk. The SBI Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,400 in SBI Holdings on October 25, 2024 and sell it today you would earn a total of 40.00 from holding SBI Holdings or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transport International Holdin vs. SBI Holdings
Performance |
| Timeline |
| Transport International |
| SBI Holdings |
Transport International and SBI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transport International and SBI Holdings
The main advantage of trading using opposite Transport International and SBI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transport International position performs unexpectedly, SBI Holdings 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 SBI Holdings will offset losses from the drop in SBI Holdings' long position.| Transport International vs. Tianjin Capital Environmental | Transport International vs. Renesas Electronics | Transport International vs. Olympic Steel | Transport International vs. TT Electronics PLC |
| SBI Holdings vs. Osisko Metals | SBI Holdings vs. Transport International Holdings | SBI Holdings vs. GALENA MINING LTD | SBI Holdings vs. Yuexiu Transport Infrastructure |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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