Correlation Between COMINTL BANK and HYBRIGENICS

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

By analyzing existing cross correlation between COMINTL BANK ADR1 and HYBRIGENICS A , you can compare the effects of market volatilities on COMINTL BANK and HYBRIGENICS 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 COMINTL BANK with a short position of HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and HYBRIGENICS.

Diversification Opportunities for COMINTL BANK and HYBRIGENICS

-0.42

Correlation Coefficient

COMINTL BANK  HYBRIGENICS

Very good diversification

The 3 months correlation between COMINTL and HYBRIGENICS is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A and COMINTL BANK 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 COMINTL BANK ADR1 are associated (or correlated) with HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of COMINTL BANK i.e., COMINTL BANK and HYBRIGENICS go up and down completely randomly.

Pair Corralation between COMINTL BANK and HYBRIGENICS

Assuming the 90 days trading horizon COMINTL BANK ADR1 is expected to generate 0.3 times more return on investment than HYBRIGENICS. However, COMINTL BANK ADR1 is 3.28 times less risky than HYBRIGENICS. It trades about -0.02 of its potential returns per unit of risk. HYBRIGENICS A is currently generating about -0.02 per unit of risk. If you would invest  132.00  in COMINTL BANK ADR1 on September 12, 2024 and sell it today you would lose (4.00) from holding COMINTL BANK ADR1 or give up 3.03% of portfolio value over 90 days.

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

COMINTL BANK ADR1  vs.  HYBRIGENICS A

COMINTL BANK ADR1

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COMINTL BANK ADR1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, COMINTL BANK is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

HYBRIGENICS A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HYBRIGENICS A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with COMINTL BANK and HYBRIGENICS

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

The idea behind COMINTL BANK ADR1 and HYBRIGENICS A 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.