Correlation Between Transimex Transportation and Alphanam
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation and Alphanam 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 Transimex Transportation and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transimex Transportation JSC and Alphanam ME, you can compare the effects of market volatilities on Transimex Transportation and Alphanam 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 Transimex Transportation with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and Alphanam.
Diversification Opportunities for Transimex Transportation and Alphanam
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Transimex and Alphanam is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Transimex Transportation 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 Transimex Transportation JSC are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and Alphanam go up and down completely randomly.
Pair Corralation between Transimex Transportation and Alphanam
Assuming the 90 days trading horizon Transimex Transportation JSC is expected to under-perform the Alphanam. But the stock apears to be less risky and, when comparing its historical volatility, Transimex Transportation JSC is 2.04 times less risky than Alphanam. The stock trades about -0.1 of its potential returns per unit of risk. The Alphanam ME is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 510,000 in Alphanam ME on August 29, 2024 and sell it today you would lose (10,000) from holding Alphanam ME or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 78.57% |
| Values | Daily Returns |
Transimex Transportation JSC vs. Alphanam ME
Performance |
| Timeline |
| Transimex Transportation |
| Alphanam ME |
Transimex Transportation and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Transportation and Alphanam
The main advantage of trading using opposite Transimex Transportation and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Transimex Transportation vs. Idico JSC | Transimex Transportation vs. Alphanam ME | Transimex Transportation vs. Hochiminh City Metal | Transimex Transportation vs. Atesco Industrial Cartering |
| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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