Correlation Between Samart Telcoms and Samart Public
Can any of the company-specific risk be diversified away by investing in both Samart Telcoms and Samart 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 Samart Telcoms and Samart Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samart Telcoms Public and Samart Public, you can compare the effects of market volatilities on Samart Telcoms and Samart 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 Samart Telcoms with a short position of Samart Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samart Telcoms and Samart Public.
Diversification Opportunities for Samart Telcoms and Samart Public
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samart and Samart is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Samart Telcoms Public and Samart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart Public and Samart Telcoms 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 Samart Telcoms Public are associated (or correlated) with Samart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Public has no effect on the direction of Samart Telcoms i.e., Samart Telcoms and Samart Public go up and down completely randomly.
Pair Corralation between Samart Telcoms and Samart Public
Assuming the 90 days trading horizon Samart Telcoms Public is expected to generate 1.81 times more return on investment than Samart Public. However, Samart Telcoms is 1.81 times more volatile than Samart Public. It trades about 0.1 of its potential returns per unit of risk. Samart Public is currently generating about -0.14 per unit of risk. If you would invest 575.00 in Samart Telcoms Public on October 24, 2024 and sell it today you would earn a total of 25.00 from holding Samart Telcoms Public or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samart Telcoms Public vs. Samart Public
Performance |
| Timeline |
| Samart Telcoms Public |
| Samart Public |
Samart Telcoms and Samart Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samart Telcoms and Samart Public
The main advantage of trading using opposite Samart Telcoms and Samart Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samart Telcoms position performs unexpectedly, Samart 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 Samart Public will offset losses from the drop in Samart Public's long position.| Samart Telcoms vs. Samart Public | Samart Telcoms vs. Jasmine International Public | Samart Telcoms vs. RS Public | Samart Telcoms vs. SVI 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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