Correlation Between President Bakery and Vintcom Technology
Can any of the company-specific risk be diversified away by investing in both President Bakery and Vintcom 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 President Bakery and Vintcom Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between President Bakery Public and Vintcom Technology PCL, you can compare the effects of market volatilities on President Bakery and Vintcom 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 President Bakery with a short position of Vintcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of President Bakery and Vintcom Technology.
Diversification Opportunities for President Bakery and Vintcom Technology
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between President and Vintcom is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding President Bakery Public and Vintcom Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vintcom Technology PCL and President Bakery 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 President Bakery Public are associated (or correlated) with Vintcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vintcom Technology PCL has no effect on the direction of President Bakery i.e., President Bakery and Vintcom Technology go up and down completely randomly.
Pair Corralation between President Bakery and Vintcom Technology
Assuming the 90 days horizon President Bakery Public is expected to under-perform the Vintcom Technology. But the stock apears to be less risky and, when comparing its historical volatility, President Bakery Public is 1.13 times less risky than Vintcom Technology. The stock trades about -0.09 of its potential returns per unit of risk. The Vintcom Technology PCL is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Vintcom Technology PCL on November 2, 2024 and sell it today you would earn a total of 12.00 from holding Vintcom Technology PCL or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
President Bakery Public vs. Vintcom Technology PCL
Performance |
| Timeline |
| President Bakery Public |
| Vintcom Technology PCL |
President Bakery and Vintcom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with President Bakery and Vintcom Technology
The main advantage of trading using opposite President Bakery and Vintcom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if President Bakery position performs unexpectedly, Vintcom 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 Vintcom Technology will offset losses from the drop in Vintcom Technology's long position.| President Bakery vs. MK Restaurant Group | President Bakery vs. Haad Thip Public | President Bakery vs. Thai President Foods | President Bakery vs. Minor International Public |
| Vintcom Technology vs. SiS Distribution Public | Vintcom Technology vs. S P V | Vintcom Technology vs. Synnex Public | Vintcom Technology vs. SVI 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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