Correlation Between 159681 and 5I5j Holding

Can any of the company-specific risk be diversified away by investing in both 159681 and 5I5j Holding 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 159681 and 5I5j Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 159681 and 5I5j Holding Group, you can compare the effects of market volatilities on 159681 and 5I5j Holding 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 159681 with a short position of 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and 5I5j Holding.

Diversification Opportunities for 159681 and 5I5j Holding

0.79

Correlation Coefficient

159681  5I5j Holding

Poor diversification

The 3 months correlation between 159681 and 5I5j is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group and 159681 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 159681 are associated (or correlated) with 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of 159681 i.e., 159681 and 5I5j Holding go up and down completely randomly.

Pair Corralation between 159681 and 5I5j Holding

Assuming the 90 days trading horizon 159681 is expected to generate 0.36 times more return on investment than 5I5j Holding. However, 159681 is 2.78 times less risky than 5I5j Holding. It trades about -0.08 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about -0.18 per unit of risk. If you would invest  99.00  in 159681 on October 1, 2024 and sell it today you would lose (2.00) from holding 159681 or give up 2.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

159681  vs.  5I5j Holding Group

159681

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 159681 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf'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 ETF investors.

5I5j Holding Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 5I5j Holding Group 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 159681 and 5I5j Holding

The main advantage of trading using opposite 159681 and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.

The idea behind 159681 and 5I5j Holding Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.