Correlation Between South Books and Post
Can any of the company-specific risk be diversified away by investing in both South Books 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 South Books and Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Books Educational and Post and Telecommunications, you can compare the effects of market volatilities on South Books 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 South Books with a short position of Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Books and Post.
Diversification Opportunities for South Books and Post
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between South and Post is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding South Books Educational 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 South Books 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 South Books Educational 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 South Books i.e., South Books and Post go up and down completely randomly.
Pair Corralation between South Books and Post
Assuming the 90 days trading horizon South Books Educational is expected to generate 0.42 times more return on investment than Post. However, South Books Educational is 2.4 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 -0.08 per unit of risk. If you would invest 1,300,000 in South Books Educational on November 2, 2024 and sell it today you would earn a total of 0.00 from holding South Books Educational or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
South Books Educational vs. Post and Telecommunications
Performance |
| Timeline |
| South Books Educational |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Post and Telecommuni |
South Books and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Books and Post
The main advantage of trading using opposite South Books and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Books 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.| South Books vs. Sao Ta Foods | South Books vs. VietinBank Securities JSC | South Books vs. Petrolimex Insurance Corp | South Books vs. IDJ FINANCIAL |
| Post vs. Hai An Transport | Post vs. BaoMinh Insurance Corp | Post vs. Investment and Industrial | Post vs. VietinBank Securities 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 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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