Correlation Between Suny Cellular and C Mer
Can any of the company-specific risk be diversified away by investing in both Suny Cellular and C Mer 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 Suny Cellular and C Mer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suny Cellular Communication and C Mer Industries, you can compare the effects of market volatilities on Suny Cellular and C Mer 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 Suny Cellular with a short position of C Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suny Cellular and C Mer.
Diversification Opportunities for Suny Cellular and C Mer
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suny and CMER is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Suny Cellular Communication and C Mer Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Mer Industries and Suny Cellular 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 Suny Cellular Communication are associated (or correlated) with C Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Mer Industries has no effect on the direction of Suny Cellular i.e., Suny Cellular and C Mer go up and down completely randomly.
Pair Corralation between Suny Cellular and C Mer
Assuming the 90 days trading horizon Suny Cellular is expected to generate 1.19 times less return on investment than C Mer. In addition to that, Suny Cellular is 1.05 times more volatile than C Mer Industries. It trades about 0.37 of its total potential returns per unit of risk. C Mer Industries is currently generating about 0.45 per unit of volatility. If you would invest 300,000 in C Mer Industries on October 24, 2024 and sell it today you would earn a total of 48,000 from holding C Mer Industries or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.44% |
| Values | Daily Returns |
Suny Cellular Communication vs. C Mer Industries
Performance |
| Timeline |
| Suny Cellular Commun |
| C Mer Industries |
Suny Cellular and C Mer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suny Cellular and C Mer
The main advantage of trading using opposite Suny Cellular and C Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suny Cellular position performs unexpectedly, C Mer 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 C Mer will offset losses from the drop in C Mer's long position.| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
| C Mer vs. Opko Health | C Mer vs. Suny Cellular Communication | C Mer vs. Hiron Trade Investments Industrial | C Mer vs. Elbit Medical Technologies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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