Correlation Between Orient Telecoms and International Consolidated
Can any of the company-specific risk be diversified away by investing in both Orient Telecoms and International Consolidated 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 Orient Telecoms and International Consolidated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orient Telecoms and International Consolidated Airlines, you can compare the effects of market volatilities on Orient Telecoms and International Consolidated 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 Orient Telecoms with a short position of International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orient Telecoms and International Consolidated.
Diversification Opportunities for Orient Telecoms and International Consolidated
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Orient and International is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Orient Telecoms and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated and Orient Telecoms 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 Orient Telecoms are associated (or correlated) with International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of Orient Telecoms i.e., Orient Telecoms and International Consolidated go up and down completely randomly.
Pair Corralation between Orient Telecoms and International Consolidated
If you would invest 23,960 in International Consolidated Airlines on September 12, 2024 and sell it today you would earn a total of 4,240 from holding International Consolidated Airlines or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orient Telecoms vs. International Consolidated Air
Performance |
| Timeline |
| Orient Telecoms |
| International Consolidated |
Orient Telecoms and International Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orient Telecoms and International Consolidated
The main advantage of trading using opposite Orient Telecoms and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orient Telecoms position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated's long position.| Orient Telecoms vs. Catalyst Media Group | Orient Telecoms vs. CATLIN GROUP | Orient Telecoms vs. Tamburi Investment Partners | Orient Telecoms vs. Magnora ASA |
| International Consolidated vs. Hong Kong Land | International Consolidated vs. Neometals | International Consolidated vs. Coor Service Management | International Consolidated vs. Fidelity Sustainable USD |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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