Correlation Between Rojana Industrial and Interlink Communication
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and Interlink Communication 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 Rojana Industrial and Interlink Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and Interlink Communication Public, you can compare the effects of market volatilities on Rojana Industrial and Interlink Communication 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 Rojana Industrial with a short position of Interlink Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Interlink Communication.
Diversification Opportunities for Rojana Industrial and Interlink Communication
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rojana and Interlink is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and Interlink Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Communication and Rojana Industrial 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 Rojana Industrial Park are associated (or correlated) with Interlink Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Communication has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and Interlink Communication go up and down completely randomly.
Pair Corralation between Rojana Industrial and Interlink Communication
Assuming the 90 days trading horizon Rojana Industrial Park is expected to generate 1.21 times more return on investment than Interlink Communication. However, Rojana Industrial is 1.21 times more volatile than Interlink Communication Public. It trades about 0.02 of its potential returns per unit of risk. Interlink Communication Public is currently generating about 0.0 per unit of risk. If you would invest 563.00 in Rojana Industrial Park on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Rojana Industrial Park or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rojana Industrial Park vs. Interlink Communication Public
Performance |
| Timeline |
| Rojana Industrial Park |
| Interlink Communication |
Rojana Industrial and Interlink Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Interlink Communication
The main advantage of trading using opposite Rojana Industrial and Interlink Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, Interlink Communication 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 Interlink Communication will offset losses from the drop in Interlink Communication's long position.| Rojana Industrial vs. Interlink Communication Public | Rojana Industrial vs. BPS TECHNOLOGY PUBLIC | Rojana Industrial vs. Grande Hospitality Real | Rojana Industrial vs. Halcyon Technology Public |
| Interlink Communication vs. KCE Electronics Public | Interlink Communication vs. Land and Houses | Interlink Communication vs. Delta Electronics Public | Interlink Communication vs. The Siam Cement |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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