Correlation Between Post and Foreign Trade
Can any of the company-specific risk be diversified away by investing in both Post and Foreign Trade 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 Foreign Trade 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 Foreign Trade Development, you can compare the effects of market volatilities on Post and Foreign Trade 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 Foreign Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Foreign Trade.
Diversification Opportunities for Post and Foreign Trade
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Post and Foreign is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Foreign Trade Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foreign Trade Development 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 Foreign Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foreign Trade Development has no effect on the direction of Post i.e., Post and Foreign Trade go up and down completely randomly.
Pair Corralation between Post and Foreign Trade
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the Foreign Trade. But the stock apears to be less risky and, when comparing its historical volatility, Post and Telecommunications is 1.58 times less risky than Foreign Trade. The stock trades about 0.0 of its potential returns per unit of risk. The Foreign Trade Development is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,900,000 in Foreign Trade Development on September 2, 2024 and sell it today you would lose (300,000) from holding Foreign Trade Development or give up 15.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.04% |
| Values | Daily Returns |
Post and Telecommunications vs. Foreign Trade Development
Performance |
| Timeline |
| Post and Telecommuni |
| Foreign Trade Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Post and Foreign Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Foreign Trade
The main advantage of trading using opposite Post and Foreign Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Foreign Trade 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 Foreign Trade will offset losses from the drop in Foreign Trade's long position.The idea behind Post and Telecommunications and Foreign Trade Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Foreign Trade vs. Tng Investment And | Foreign Trade vs. MST Investment JSC | Foreign Trade vs. VTC Telecommunications JSC | Foreign Trade vs. Construction And Investment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |