Correlation Between Post and Construction
Can any of the company-specific risk be diversified away by investing in both Post and Construction 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 Construction 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 Construction And Investment, you can compare the effects of market volatilities on Post and Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Construction.
Diversification Opportunities for Post and Construction
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Post and Construction is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Construction And Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Construction And Inv 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Construction And Inv has no effect on the direction of Post i.e., Post and Construction go up and down completely randomly.
Pair Corralation between Post and Construction
Assuming the 90 days trading horizon Post is expected to generate 102.4 times less return on investment than Construction. In addition to that, Post is 1.16 times more volatile than Construction And Investment. It trades about 0.0 of its total potential returns per unit of risk. Construction And Investment is currently generating about 0.07 per unit of volatility. If you would invest 1,969,909 in Construction And Investment on November 1, 2024 and sell it today you would earn a total of 1,740,091 from holding Construction And Investment or generate 88.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Construction And Investment
Performance |
| Timeline |
| Post and Telecommuni |
| Construction And Inv |
Post and Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Construction
The main advantage of trading using opposite Post and Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Construction 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 Construction will offset losses from the drop in Construction's long position.| Post vs. Techno Agricultural Supplying | Post vs. Phuoc Hoa Rubber | Post vs. Vietnam Petroleum Transport | Post vs. Hai An Transport |
| Construction vs. Post and Telecommunications | Construction vs. PostTelecommunication Equipment | Construction vs. Hochiminh City Metal | Construction vs. Industrial Urban Development |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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