Correlation Between Post and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both Post and Mekong Fisheries 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 Post and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post and Telecommunications and Mekong Fisheries JSC, you can compare the effects of market volatilities on Post and Mekong Fisheries 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 Post with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Mekong Fisheries.
Diversification Opportunities for Post and Mekong Fisheries
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Post and Mekong is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and Post 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 Post and Telecommunications are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of Post i.e., Post and Mekong Fisheries go up and down completely randomly.
Pair Corralation between Post and Mekong Fisheries
Assuming the 90 days trading horizon Post and Telecommunications is expected to generate 1.05 times more return on investment than Mekong Fisheries. However, Post is 1.05 times more volatile than Mekong Fisheries JSC. It trades about 0.01 of its potential returns per unit of risk. Mekong Fisheries JSC is currently generating about -0.01 per unit of risk. If you would invest 467,000 in Post and Telecommunications on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Post and Telecommunications or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Mekong Fisheries JSC
Performance |
| Timeline |
| Post and Telecommuni |
| Mekong Fisheries JSC |
Post and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Mekong Fisheries
The main advantage of trading using opposite Post and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| Post vs. Construction And Investment | Post vs. Binhthuan Agriculture Services | Post vs. Danang Education Investment | Post vs. Agriculture Printing and |
| Mekong Fisheries vs. Ha Long Investment | Mekong Fisheries vs. Post and Telecommunications | Mekong Fisheries vs. Danang Education Investment | Mekong Fisheries vs. HUD1 Investment and |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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