Correlation Between Raja Ferry and Precious Shipping
Can any of the company-specific risk be diversified away by investing in both Raja Ferry and Precious Shipping 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 Raja Ferry and Precious Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raja Ferry Port and Precious Shipping Public, you can compare the effects of market volatilities on Raja Ferry and Precious Shipping 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 Raja Ferry with a short position of Precious Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raja Ferry and Precious Shipping.
Diversification Opportunities for Raja Ferry and Precious Shipping
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Raja and Precious is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Raja Ferry Port and Precious Shipping Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precious Shipping Public and Raja Ferry 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 Raja Ferry Port are associated (or correlated) with Precious Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precious Shipping Public has no effect on the direction of Raja Ferry i.e., Raja Ferry and Precious Shipping go up and down completely randomly.
Pair Corralation between Raja Ferry and Precious Shipping
Assuming the 90 days horizon Raja Ferry Port is expected to generate 25.73 times more return on investment than Precious Shipping. However, Raja Ferry is 25.73 times more volatile than Precious Shipping Public. It trades about 0.06 of its potential returns per unit of risk. Precious Shipping Public is currently generating about 0.0 per unit of risk. If you would invest 159.00 in Raja Ferry Port on September 2, 2024 and sell it today you would lose (49.00) from holding Raja Ferry Port or give up 30.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raja Ferry Port vs. Precious Shipping Public
Performance |
| Timeline |
| Raja Ferry Port |
| Precious Shipping Public |
Raja Ferry and Precious Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raja Ferry and Precious Shipping
The main advantage of trading using opposite Raja Ferry and Precious Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raja Ferry position performs unexpectedly, Precious Shipping 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 Precious Shipping will offset losses from the drop in Precious Shipping's long position.| Raja Ferry vs. Precious Shipping Public | Raja Ferry vs. Regional Container Lines | Raja Ferry vs. Begistics Public |
| Precious Shipping vs. Gulf Energy Development | Precious Shipping vs. Energy Absolute Public | Precious Shipping vs. WHA Public | Precious Shipping vs. Bangkok Expressway and |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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