Correlation Between Stock Exchange and Big Camera
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Big Camera 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 Stock Exchange and Big Camera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Big Camera, you can compare the effects of market volatilities on Stock Exchange and Big Camera 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 Stock Exchange with a short position of Big Camera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Big Camera.
Diversification Opportunities for Stock Exchange and Big Camera
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stock and Big is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Big Camera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Camera and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Big Camera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Camera has no effect on the direction of Stock Exchange i.e., Stock Exchange and Big Camera go up and down completely randomly.
Pair Corralation between Stock Exchange and Big Camera
Assuming the 90 days trading horizon Stock Exchange is expected to generate 185.84 times less return on investment than Big Camera. But when comparing it to its historical volatility, Stock Exchange Of is 93.38 times less risky than Big Camera. It trades about 0.03 of its potential returns per unit of risk. Big Camera is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Big Camera on August 25, 2024 and sell it today you would lose (12.00) from holding Big Camera or give up 24.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Big Camera
Performance |
| Timeline |
Stock Exchange and Big Camera Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Big Camera
Pair trading matchups for Big Camera
Pair Trading with Stock Exchange and Big Camera
The main advantage of trading using opposite Stock Exchange and Big Camera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Big Camera 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 Big Camera will offset losses from the drop in Big Camera's long position.| Stock Exchange vs. Bank of Ayudhya | Stock Exchange vs. ABSOLUTE CLEAN ENERGY | Stock Exchange vs. DOHOME | Stock Exchange vs. Srinanaporn Marketing Public |
| Big Camera vs. Ananda Development Public | Big Camera vs. Beauty Community Public | Big Camera vs. Asia Aviation Public | Big Camera vs. Gunkul Engineering Public |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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