Correlation Between Saha Pathana and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both Saha Pathana and Berli Jucker 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 Saha Pathana and Berli Jucker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saha Pathana Inter Holding and Berli Jucker Public, you can compare the effects of market volatilities on Saha Pathana and Berli Jucker 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 Saha Pathana with a short position of Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saha Pathana and Berli Jucker.
Diversification Opportunities for Saha Pathana and Berli Jucker
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saha and Berli is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Saha Pathana Inter Holding and Berli Jucker Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker Public and Saha Pathana 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 Saha Pathana Inter Holding are associated (or correlated) with Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker Public has no effect on the direction of Saha Pathana i.e., Saha Pathana and Berli Jucker go up and down completely randomly.
Pair Corralation between Saha Pathana and Berli Jucker
Assuming the 90 days trading horizon Saha Pathana Inter Holding is expected to generate 0.67 times more return on investment than Berli Jucker. However, Saha Pathana Inter Holding is 1.48 times less risky than Berli Jucker. It trades about -0.24 of its potential returns per unit of risk. Berli Jucker Public is currently generating about -0.18 per unit of risk. If you would invest 6,250 in Saha Pathana Inter Holding on October 20, 2024 and sell it today you would lose (350.00) from holding Saha Pathana Inter Holding or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Saha Pathana Inter Holding vs. Berli Jucker Public
Performance |
| Timeline |
| Saha Pathana Inter |
| Berli Jucker Public |
Saha Pathana and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saha Pathana and Berli Jucker
The main advantage of trading using opposite Saha Pathana and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saha Pathana position performs unexpectedly, Berli Jucker 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 Berli Jucker will offset losses from the drop in Berli Jucker's long position.| Saha Pathana vs. AP Public | Saha Pathana vs. Siri Prime Office | Saha Pathana vs. Quality Houses Public | Saha Pathana vs. LPN Development Public |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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