Correlation Between Selic Corp and Netbay Public
Can any of the company-specific risk be diversified away by investing in both Selic Corp and Netbay 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 Selic Corp and Netbay Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selic Corp Public and Netbay Public, you can compare the effects of market volatilities on Selic Corp and Netbay 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 Selic Corp with a short position of Netbay Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selic Corp and Netbay Public.
Diversification Opportunities for Selic Corp and Netbay Public
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Selic and Netbay is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Selic Corp Public and Netbay Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netbay Public and Selic Corp 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 Selic Corp Public are associated (or correlated) with Netbay Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netbay Public has no effect on the direction of Selic Corp i.e., Selic Corp and Netbay Public go up and down completely randomly.
Pair Corralation between Selic Corp and Netbay Public
Assuming the 90 days trading horizon Selic Corp is expected to generate 27.66 times less return on investment than Netbay Public. But when comparing it to its historical volatility, Selic Corp Public is 2.26 times less risky than Netbay Public. It trades about 0.01 of its potential returns per unit of risk. Netbay Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,590 in Netbay Public on September 4, 2024 and sell it today you would earn a total of 170.00 from holding Netbay Public or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selic Corp Public vs. Netbay Public
Performance |
| Timeline |
| Selic Corp Public |
| Netbay Public |
Selic Corp and Netbay Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selic Corp and Netbay Public
The main advantage of trading using opposite Selic Corp and Netbay Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selic Corp position performs unexpectedly, Netbay 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 Netbay Public will offset losses from the drop in Netbay Public's long position.| Selic Corp vs. PTT Public | Selic Corp vs. The Siam Commercial | Selic Corp vs. Airports of Thailand | Selic Corp vs. CP ALL Public |
| Netbay Public vs. Mega Lifesciences Public | Netbay Public vs. Carabao Group Public | Netbay Public vs. Humanica Public | Netbay Public vs. Siam Wellness Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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