Correlation Between Construction JSC and COMA 18
Can any of the company-specific risk be diversified away by investing in both Construction JSC and COMA 18 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 Construction JSC and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Construction JSC No5 and COMA 18 JSC, you can compare the effects of market volatilities on Construction JSC and COMA 18 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 Construction JSC with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Construction JSC and COMA 18.
Diversification Opportunities for Construction JSC and COMA 18
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Construction and COMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Construction JSC No5 and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 JSC and Construction JSC 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 Construction JSC No5 are associated (or correlated) with COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of Construction JSC i.e., Construction JSC and COMA 18 go up and down completely randomly.
Pair Corralation between Construction JSC and COMA 18
If you would invest 2,000,000 in Construction JSC No5 on October 9, 2024 and sell it today you would earn a total of 200,000 from holding Construction JSC No5 or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 10.0% |
| Values | Daily Returns |
Construction JSC No5 vs. COMA 18 JSC
Performance |
| Timeline |
| Construction JSC No5 |
| COMA 18 JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Construction JSC and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Construction JSC and COMA 18
The main advantage of trading using opposite Construction JSC and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Construction JSC position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.| Construction JSC vs. Petrovietnam Technical Services | Construction JSC vs. Vina2 Investment and | Construction JSC vs. Petrolimex International Trading | Construction JSC vs. CEO Group JSC |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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