Correlation Between Stic Investments and CHOROKBAEM COMPANY

Can any of the company-specific risk be diversified away by investing in both Stic Investments and CHOROKBAEM COMPANY 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 Stic Investments and CHOROKBAEM COMPANY into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stic Investments and CHOROKBAEM PANY Co, you can compare the effects of market volatilities on Stic Investments and CHOROKBAEM COMPANY 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 Stic Investments with a short position of CHOROKBAEM COMPANY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and CHOROKBAEM COMPANY.

Diversification Opportunities for Stic Investments and CHOROKBAEM COMPANY

-0.48

Correlation Coefficient

Stic Investments  CHOROKBAEM COMPANY

Very good diversification

The 3 months correlation between Stic and CHOROKBAEM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and CHOROKBAEM PANY Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHOROKBAEM COMPANY and Stic Investments 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 Stic Investments are associated (or correlated) with CHOROKBAEM COMPANY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHOROKBAEM COMPANY has no effect on the direction of Stic Investments i.e., Stic Investments and CHOROKBAEM COMPANY go up and down completely randomly.

Pair Corralation between Stic Investments and CHOROKBAEM COMPANY

Assuming the 90 days trading horizon Stic Investments is expected to generate 1.22 times more return on investment than CHOROKBAEM COMPANY. However, Stic Investments is 1.22 times more volatile than CHOROKBAEM PANY Co. It trades about 0.16 of its potential returns per unit of risk. CHOROKBAEM PANY Co is currently generating about -0.34 per unit of risk. If you would invest  783,000  in Stic Investments on September 24, 2024 and sell it today you would earn a total of  56,000  from holding Stic Investments or generate 7.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Stic Investments  vs.  CHOROKBAEM PANY Co

Stic Investments

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stic Investments are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Stic Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CHOROKBAEM COMPANY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHOROKBAEM PANY Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Stic Investments and CHOROKBAEM COMPANY

The main advantage of trading using opposite Stic Investments and CHOROKBAEM COMPANY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, CHOROKBAEM COMPANY 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 CHOROKBAEM COMPANY will offset losses from the drop in CHOROKBAEM COMPANY's long position.

The idea behind Stic Investments and CHOROKBAEM PANY Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.