Correlation Between Sea Air and Post
Can any of the company-specific risk be diversified away by investing in both Sea Air and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Sea Air and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea Air and Post.
Diversification Opportunities for Sea Air and Post
Weak diversification
The 3 months correlation between Sea and Post is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sea Air Freight and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Sea Air i.e., Sea Air and Post go up and down completely randomly.
Pair Corralation between Sea Air and Post
Assuming the 90 days trading horizon Sea Air Freight is expected to generate 0.75 times more return on investment than Post. However, Sea Air Freight is 1.33 times less risky than Post. It trades about 0.01 of its potential returns per unit of risk. Post and Telecommunications is currently generating about -0.19 per unit of risk. If you would invest 3,080,000 in Sea Air Freight on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Sea Air Freight or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Sea Air Freight vs. Post and Telecommunications
Performance |
| Timeline |
| Sea Air Freight |
| Post and Telecommuni |
Sea Air and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea Air and Post
The main advantage of trading using opposite Sea Air and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea Air position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Sea Air vs. FIT INVEST JSC | Sea Air vs. Damsan JSC | Sea Air vs. An Phat Plastic | Sea Air vs. APG Securities Joint |
| Post vs. Elcom Technology Communications | Post vs. Sea Air Freight | Post vs. Truong Thanh Furniture | Post vs. Visicons Construction and |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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