Correlation Between Sea Air and COMA 18
Can any of the company-specific risk be diversified away by investing in both Sea Air 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 Sea Air and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea Air Freight and COMA 18 JSC, you can compare the effects of market volatilities on Sea Air 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 Sea Air with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea Air and COMA 18.
Diversification Opportunities for Sea Air and COMA 18
Excellent diversification
The 3 months correlation between Sea and COMA is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sea Air Freight 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 Sea Air 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 Sea Air Freight 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 Sea Air i.e., Sea Air and COMA 18 go up and down completely randomly.
Pair Corralation between Sea Air and COMA 18
Assuming the 90 days trading horizon Sea Air Freight is expected to under-perform the COMA 18. But the stock apears to be less risky and, when comparing its historical volatility, Sea Air Freight is 1.97 times less risky than COMA 18. The stock trades about -0.05 of its potential returns per unit of risk. The COMA 18 JSC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 520,000 in COMA 18 JSC on September 2, 2024 and sell it today you would earn a total of 387,000 from holding COMA 18 JSC or generate 74.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.38% |
| Values | Daily Returns |
Sea Air Freight vs. COMA 18 JSC
Performance |
| Timeline |
| Sea Air Freight |
| COMA 18 JSC |
Sea Air and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea Air and COMA 18
The main advantage of trading using opposite Sea Air and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea Air 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.The idea behind Sea Air Freight and COMA 18 JSC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| COMA 18 vs. Global Electrical Technology | COMA 18 vs. Saigon Telecommunication Technologies | COMA 18 vs. Saigon Beer Alcohol | COMA 18 vs. Nafoods Group JSC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |