Correlation Between POST TELECOMMU and Visicons Construction
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Visicons 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 TELECOMMU and Visicons Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Visicons Construction and, you can compare the effects of market volatilities on POST TELECOMMU and Visicons 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 TELECOMMU with a short position of Visicons Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Visicons Construction.
Diversification Opportunities for POST TELECOMMU and Visicons Construction
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POST and Visicons is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Visicons Construction and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visicons Construction and 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 Visicons Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visicons Construction and has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Visicons Construction go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Visicons Construction
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 0.61 times more return on investment than Visicons Construction. However, POST TELECOMMU is 1.64 times less risky than Visicons Construction. It trades about 0.19 of its potential returns per unit of risk. Visicons Construction and is currently generating about 0.09 per unit of risk. If you would invest 3,190,000 in POST TELECOMMU on October 17, 2024 and sell it today you would earn a total of 330,000 from holding POST TELECOMMU or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
POST TELECOMMU vs. Visicons Construction and
Performance |
| Timeline |
| POST TELECOMMU |
| Visicons Construction and |
POST TELECOMMU and Visicons Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Visicons Construction
The main advantage of trading using opposite POST TELECOMMU and Visicons Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Visicons 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 Visicons Construction will offset losses from the drop in Visicons Construction's long position.| POST TELECOMMU vs. FIT INVEST JSC | POST TELECOMMU vs. Damsan JSC | POST TELECOMMU vs. An Phat Plastic | POST TELECOMMU vs. APG Securities Joint |
| Visicons Construction vs. Tien Phong Plastic | Visicons Construction vs. An Phat Holdings | Visicons Construction vs. FPT Corp | Visicons Construction vs. POST TELECOMMU |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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