Correlation Between RangDong Plastic and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both RangDong Plastic and POST TELECOMMU 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 RangDong Plastic and POST TELECOMMU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RangDong Plastic JSC and POST TELECOMMU, you can compare the effects of market volatilities on RangDong Plastic and POST TELECOMMU 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 RangDong Plastic with a short position of POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of RangDong Plastic and POST TELECOMMU.
Diversification Opportunities for RangDong Plastic and POST TELECOMMU
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between RangDong and POST is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding RangDong Plastic JSC and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU and RangDong Plastic 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 RangDong Plastic JSC are associated (or correlated) with POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of RangDong Plastic i.e., RangDong Plastic and POST TELECOMMU go up and down completely randomly.
Pair Corralation between RangDong Plastic and POST TELECOMMU
Assuming the 90 days trading horizon RangDong Plastic JSC is expected to under-perform the POST TELECOMMU. In addition to that, RangDong Plastic is 1.25 times more volatile than POST TELECOMMU. It trades about -0.45 of its total potential returns per unit of risk. POST TELECOMMU is currently generating about 0.07 per unit of volatility. If you would invest 2,950,000 in POST TELECOMMU on September 3, 2024 and sell it today you would earn a total of 80,000 from holding POST TELECOMMU or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
RangDong Plastic JSC vs. POST TELECOMMU
Performance |
| Timeline |
| RangDong Plastic JSC |
| POST TELECOMMU |
RangDong Plastic and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RangDong Plastic and POST TELECOMMU
The main advantage of trading using opposite RangDong Plastic and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RangDong Plastic position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| RangDong Plastic vs. FIT INVEST JSC | RangDong Plastic vs. Damsan JSC | RangDong Plastic vs. An Phat Plastic | RangDong Plastic vs. Alphanam ME |
| POST TELECOMMU vs. Century Synthetic Fiber | POST TELECOMMU vs. Telecoms Informatics JSC | POST TELECOMMU vs. Elcom Technology Communications | POST TELECOMMU vs. Petrolimex Insurance Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |