Correlation Between POST TELECOMMU and Cuulong Fish

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Cuulong Fish 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 Cuulong Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Cuulong Fish JSC, you can compare the effects of market volatilities on POST TELECOMMU and Cuulong Fish 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 Cuulong Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Cuulong Fish.

Diversification Opportunities for POST TELECOMMU and Cuulong Fish

POSTCuulongDiversified AwayPOSTCuulongDiversified Away100%
0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between POST and Cuulong is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Cuulong Fish JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuulong Fish JSC 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 Cuulong Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuulong Fish JSC has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Cuulong Fish go up and down completely randomly.

Pair Corralation between POST TELECOMMU and Cuulong Fish

Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 2.28 times more return on investment than Cuulong Fish. However, POST TELECOMMU is 2.28 times more volatile than Cuulong Fish JSC. It trades about 0.03 of its potential returns per unit of risk. Cuulong Fish JSC is currently generating about 0.01 per unit of risk. If you would invest  2,099,998  in POST TELECOMMU on November 30, 2024 and sell it today you would earn a total of  260,002  from holding POST TELECOMMU or generate 12.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy86.91%
ValuesDaily Returns

POST TELECOMMU  vs.  Cuulong Fish JSC

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-50
JavaScript chart by amCharts 3.21.15PTI ACL
       Timeline  
POST TELECOMMU 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in POST TELECOMMU are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, POST TELECOMMU displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb20,50021,00021,50022,00022,50023,00023,50024,000
Cuulong Fish JSC 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cuulong Fish JSC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, Cuulong Fish is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11,00011,20011,40011,60011,80012,000

POST TELECOMMU and Cuulong Fish Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.62-5.71-3.79-1.880.01.973.985.987.99 0.10.20.30.40.50.60.7
JavaScript chart by amCharts 3.21.15PTI ACL
       Returns  

Pair Trading with POST TELECOMMU and Cuulong Fish

The main advantage of trading using opposite POST TELECOMMU and Cuulong Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Cuulong Fish 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 Cuulong Fish will offset losses from the drop in Cuulong Fish's long position.
The idea behind POST TELECOMMU and Cuulong Fish JSC 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.
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk