Correlation Between PEPKOR and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both PEPKOR and SOCKET MOBILE 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 PEPKOR and SOCKET MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEPKOR LTD and SOCKET MOBILE NEW, you can compare the effects of market volatilities on PEPKOR and SOCKET MOBILE 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 PEPKOR with a short position of SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPKOR and SOCKET MOBILE.
Diversification Opportunities for PEPKOR and SOCKET MOBILE
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PEPKOR and SOCKET is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding PEPKOR LTD and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW and PEPKOR 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 PEPKOR LTD are associated (or correlated) with SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of PEPKOR i.e., PEPKOR and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between PEPKOR and SOCKET MOBILE
Assuming the 90 days trading horizon PEPKOR LTD is expected to generate 1.44 times more return on investment than SOCKET MOBILE. However, PEPKOR is 1.44 times more volatile than SOCKET MOBILE NEW. It trades about 0.13 of its potential returns per unit of risk. SOCKET MOBILE NEW is currently generating about 0.11 per unit of risk. If you would invest 58.00 in PEPKOR LTD on November 3, 2024 and sell it today you would earn a total of 70.00 from holding PEPKOR LTD or generate 120.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PEPKOR LTD vs. SOCKET MOBILE NEW
Performance |
| Timeline |
| PEPKOR LTD |
| SOCKET MOBILE NEW |
PEPKOR and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEPKOR and SOCKET MOBILE
The main advantage of trading using opposite PEPKOR and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPKOR position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| PEPKOR vs. Addus HomeCare | PEPKOR vs. Shin Etsu Chemical Co | PEPKOR vs. HAVERTY FURNITURE A | PEPKOR vs. China BlueChemical |
| SOCKET MOBILE vs. SIVERS SEMICONDUCTORS AB | SOCKET MOBILE vs. NorAm Drilling AS | SOCKET MOBILE vs. Volkswagen AG | SOCKET MOBILE vs. Darden Restaurants |
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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