Correlation Between Stic Investments and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both Stic Investments and Cuckoo Homesys 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 Cuckoo Homesys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and Cuckoo Homesys Co, you can compare the effects of market volatilities on Stic Investments and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Cuckoo Homesys.
Diversification Opportunities for Stic Investments and Cuckoo Homesys
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stic and Cuckoo is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of Stic Investments i.e., Stic Investments and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between Stic Investments and Cuckoo Homesys
Assuming the 90 days trading horizon Stic Investments is expected to generate 1.27 times more return on investment than Cuckoo Homesys. However, Stic Investments is 1.27 times more volatile than Cuckoo Homesys Co. It trades about 0.07 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.04 per unit of risk. If you would invest 812,000 in Stic Investments on September 25, 2024 and sell it today you would earn a total of 73,000 from holding Stic Investments or generate 8.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Stic Investments vs. Cuckoo Homesys Co
Performance |
Timeline |
Stic Investments |
Cuckoo Homesys |
Stic Investments and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stic Investments and Cuckoo Homesys
The main advantage of trading using opposite Stic Investments and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.Stic Investments vs. Dongsin Engineering Construction | Stic Investments vs. Doosan Fuel Cell | Stic Investments vs. Daishin Balance 1 | Stic Investments vs. Total Soft Bank |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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