Correlation Between POST TELECOMMU and Bentre Aquaproduct
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Bentre Aquaproduct 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 TELECOMMU and Bentre Aquaproduct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Bentre Aquaproduct Import, you can compare the effects of market volatilities on POST TELECOMMU and Bentre Aquaproduct 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 TELECOMMU with a short position of Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Bentre Aquaproduct.
Diversification Opportunities for POST TELECOMMU and Bentre Aquaproduct
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POST and Bentre is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Bentre Aquaproduct Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentre Aquaproduct Import and POST TELECOMMU 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 TELECOMMU are associated (or correlated) with Bentre Aquaproduct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentre Aquaproduct Import has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Bentre Aquaproduct go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Bentre Aquaproduct
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 2.87 times more return on investment than Bentre Aquaproduct. However, POST TELECOMMU is 2.87 times more volatile than Bentre Aquaproduct Import. It trades about 0.06 of its potential returns per unit of risk. Bentre Aquaproduct Import is currently generating about 0.07 per unit of risk. If you would invest 2,106,665 in POST TELECOMMU on October 30, 2024 and sell it today you would earn a total of 103,335 from holding POST TELECOMMU or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
POST TELECOMMU vs. Bentre Aquaproduct Import
Performance |
| Timeline |
| POST TELECOMMU |
| Bentre Aquaproduct Import |
POST TELECOMMU and Bentre Aquaproduct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Bentre Aquaproduct
The main advantage of trading using opposite POST TELECOMMU and Bentre Aquaproduct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Bentre Aquaproduct 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 Bentre Aquaproduct will offset losses from the drop in Bentre Aquaproduct's long position.| POST TELECOMMU vs. Elcom Technology Communications | POST TELECOMMU vs. MST Investment JSC | POST TELECOMMU vs. Pacific Petroleum Transportation | POST TELECOMMU vs. Vina2 Investment and |
| Bentre Aquaproduct vs. Pacific Petroleum Transportation | Bentre Aquaproduct vs. Din Capital Investment | Bentre Aquaproduct vs. TDT Investment and | Bentre Aquaproduct vs. DOMESCO Medical Import |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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