Correlation Between SMC Investment and Investment
Can any of the company-specific risk be diversified away by investing in both SMC Investment and Investment 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 SMC Investment and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMC Investment Trading and Investment and Industrial, you can compare the effects of market volatilities on SMC Investment and Investment 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 SMC Investment with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMC Investment and Investment.
Diversification Opportunities for SMC Investment and Investment
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SMC and Investment is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SMC Investment Trading and Investment and Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment and Industrial and SMC Investment 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 SMC Investment Trading are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment and Industrial has no effect on the direction of SMC Investment i.e., SMC Investment and Investment go up and down completely randomly.
Pair Corralation between SMC Investment and Investment
Assuming the 90 days trading horizon SMC Investment Trading is expected to under-perform the Investment. In addition to that, SMC Investment is 1.85 times more volatile than Investment and Industrial. It trades about -0.01 of its total potential returns per unit of risk. Investment and Industrial is currently generating about -0.01 per unit of volatility. If you would invest 8,209,490 in Investment and Industrial on October 30, 2024 and sell it today you would lose (1,279,490) from holding Investment and Industrial or give up 15.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMC Investment Trading vs. Investment and Industrial
Performance |
| Timeline |
| SMC Investment Trading |
| Investment and Industrial |
SMC Investment and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMC Investment and Investment
The main advantage of trading using opposite SMC Investment and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMC Investment position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| SMC Investment vs. TDT Investment and | SMC Investment vs. Vincom Retail JSC | SMC Investment vs. Dinhvu Port Investment | SMC Investment vs. Japan Vietnam Medical |
| Investment vs. DOMESCO Medical Import | Investment vs. HVC Investment and | Investment vs. Pha Lai Thermal | Investment vs. IDJ FINANCIAL |
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 Stocks Directory module to find actively traded stocks across global markets.
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