Correlation Between TMT Steel and Inter Far
Can any of the company-specific risk be diversified away by investing in both TMT Steel and Inter Far 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 TMT Steel and Inter Far into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TMT Steel Public and Inter Far East, you can compare the effects of market volatilities on TMT Steel and Inter Far 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 TMT Steel with a short position of Inter Far. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMT Steel and Inter Far.
Diversification Opportunities for TMT Steel and Inter Far
Pay attention - limited upside
The 3 months correlation between TMT and Inter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TMT Steel Public and Inter Far East in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Far East and TMT Steel 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 TMT Steel Public are associated (or correlated) with Inter Far. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Far East has no effect on the direction of TMT Steel i.e., TMT Steel and Inter Far go up and down completely randomly.
Pair Corralation between TMT Steel and Inter Far
If you would invest (100.00) in Inter Far East on September 22, 2024 and sell it today you would earn a total of 100.00 from holding Inter Far East or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TMT Steel Public vs. Inter Far East
Performance |
| Timeline |
| TMT Steel Public |
| Inter Far East |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TMT Steel and Inter Far Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMT Steel and Inter Far
The main advantage of trading using opposite TMT Steel and Inter Far positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMT Steel position performs unexpectedly, Inter Far 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 Inter Far will offset losses from the drop in Inter Far's long position.| TMT Steel vs. MCS Steel Public | TMT Steel vs. Thai Vegetable Oil | TMT Steel vs. Pacific Pipe Public | TMT Steel vs. Tipco Foods Public |
| Inter Far vs. LH Hotel Leasehold | Inter Far vs. Charoen Pokphand Foods | Inter Far vs. KT Medical Service | Inter Far vs. 2S Metal Public |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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