Correlation Between Post and South Books
Can any of the company-specific risk be diversified away by investing in both Post and South Books 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 South Books 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 South Books Educational, you can compare the effects of market volatilities on Post and South Books 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 South Books. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and South Books.
Diversification Opportunities for Post and South Books
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Post and South is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and South Books Educational in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Books Educational 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 South Books. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Books Educational has no effect on the direction of Post i.e., Post and South Books go up and down completely randomly.
Pair Corralation between Post and South Books
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the South Books. In addition to that, Post is 2.4 times more volatile than South Books Educational. It trades about -0.08 of its total potential returns per unit of risk. South Books Educational is currently generating about 0.01 per unit of volatility. If you would invest 1,300,000 in South Books Educational on November 2, 2024 and sell it today you would earn a total of 0.00 from holding South Books Educational or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Post and Telecommunications vs. South Books Educational
Performance |
| Timeline |
| Post and Telecommuni |
| South Books Educational |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Post and South Books Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and South Books
The main advantage of trading using opposite Post and South Books positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, South Books 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 South Books will offset losses from the drop in South Books' long position.| Post vs. Hai An Transport | Post vs. BaoMinh Insurance Corp | Post vs. Investment and Industrial | Post vs. VietinBank Securities JSC |
| South Books vs. Sao Ta Foods | South Books vs. VietinBank Securities JSC | South Books vs. Petrolimex Insurance Corp | South Books vs. IDJ FINANCIAL |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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