Correlation Between RB FOOD and Sikarin Public
Can any of the company-specific risk be diversified away by investing in both RB FOOD and Sikarin Public 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 RB FOOD and Sikarin Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RB FOOD SUPPLY and Sikarin Public, you can compare the effects of market volatilities on RB FOOD and Sikarin Public 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 RB FOOD with a short position of Sikarin Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB FOOD and Sikarin Public.
Diversification Opportunities for RB FOOD and Sikarin Public
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between RBF-R and Sikarin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding RB FOOD SUPPLY and Sikarin Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sikarin Public and RB FOOD 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 RB FOOD SUPPLY are associated (or correlated) with Sikarin Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sikarin Public has no effect on the direction of RB FOOD i.e., RB FOOD and Sikarin Public go up and down completely randomly.
Pair Corralation between RB FOOD and Sikarin Public
Assuming the 90 days trading horizon RB FOOD SUPPLY is expected to under-perform the Sikarin Public. In addition to that, RB FOOD is 11.85 times more volatile than Sikarin Public. It trades about -0.14 of its total potential returns per unit of risk. Sikarin Public is currently generating about 0.09 per unit of volatility. If you would invest 925.00 in Sikarin Public on September 5, 2024 and sell it today you would earn a total of 15.00 from holding Sikarin Public or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RB FOOD SUPPLY vs. Sikarin Public
Performance |
| Timeline |
| RB FOOD SUPPLY |
| Sikarin Public |
RB FOOD and Sikarin Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RB FOOD and Sikarin Public
The main advantage of trading using opposite RB FOOD and Sikarin Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB FOOD position performs unexpectedly, Sikarin Public 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 Sikarin Public will offset losses from the drop in Sikarin Public's long position.| RB FOOD vs. Kingsmen CMTI Public | RB FOOD vs. Hydrotek Public | RB FOOD vs. Karmarts Public | RB FOOD vs. KC Metalsheet Public |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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