Correlation Between PSG FINANCIAL and CIM FINANCIAL
Can any of the company-specific risk be diversified away by investing in both PSG FINANCIAL and CIM FINANCIAL 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 PSG FINANCIAL and CIM FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSG FINANCIAL SERVICES and CIM FINANCIAL SERVICES, you can compare the effects of market volatilities on PSG FINANCIAL and CIM FINANCIAL 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 PSG FINANCIAL with a short position of CIM FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSG FINANCIAL and CIM FINANCIAL.
Diversification Opportunities for PSG FINANCIAL and CIM FINANCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PSG and CIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PSG FINANCIAL SERVICES and CIM FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIM FINANCIAL SERVICES and PSG FINANCIAL 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 PSG FINANCIAL SERVICES are associated (or correlated) with CIM FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIM FINANCIAL SERVICES has no effect on the direction of PSG FINANCIAL i.e., PSG FINANCIAL and CIM FINANCIAL go up and down completely randomly.
Pair Corralation between PSG FINANCIAL and CIM FINANCIAL
If you would invest 955.00 in CIM FINANCIAL SERVICES on September 12, 2024 and sell it today you would earn a total of 295.00 from holding CIM FINANCIAL SERVICES or generate 30.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 87.09% |
| Values | Daily Returns |
PSG FINANCIAL SERVICES vs. CIM FINANCIAL SERVICES
Performance |
| Timeline |
| PSG FINANCIAL SERVICES |
| CIM FINANCIAL SERVICES |
PSG FINANCIAL and CIM FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSG FINANCIAL and CIM FINANCIAL
The main advantage of trading using opposite PSG FINANCIAL and CIM FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSG FINANCIAL position performs unexpectedly, CIM FINANCIAL 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 CIM FINANCIAL will offset losses from the drop in CIM FINANCIAL's long position.| PSG FINANCIAL vs. FINCORP INVESTMENT LTD | PSG FINANCIAL vs. LOTTOTECH LTD | PSG FINANCIAL vs. LUX ISLAND RESORTS | PSG FINANCIAL vs. NEW MAURITIUS HOTELS |
| CIM FINANCIAL vs. FINCORP INVESTMENT LTD | CIM FINANCIAL vs. LOTTOTECH LTD | CIM FINANCIAL vs. LUX ISLAND RESORTS | CIM FINANCIAL vs. PSG FINANCIAL SERVICES |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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