Correlation Between House Of and Security Bank
Can any of the company-specific risk be diversified away by investing in both House Of and Security Bank 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 House Of and Security Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between House of Investments and Security Bank Corp, you can compare the effects of market volatilities on House Of and Security Bank 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 House Of with a short position of Security Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of House Of and Security Bank.
Diversification Opportunities for House Of and Security Bank
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between House and Security is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding House of Investments and Security Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Bank Corp and House Of 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 House of Investments are associated (or correlated) with Security Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Bank Corp has no effect on the direction of House Of i.e., House Of and Security Bank go up and down completely randomly.
Pair Corralation between House Of and Security Bank
Assuming the 90 days trading horizon House of Investments is expected to generate 1.56 times more return on investment than Security Bank. However, House Of is 1.56 times more volatile than Security Bank Corp. It trades about -0.01 of its potential returns per unit of risk. Security Bank Corp is currently generating about -0.14 per unit of risk. If you would invest 350.00 in House of Investments on December 3, 2024 and sell it today you would lose (8.00) from holding House of Investments or give up 2.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 50.85% |
Values | Daily Returns |
House of Investments vs. Security Bank Corp
Performance |
Timeline |
House of Investments |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Security Bank Corp |
House Of and Security Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with House Of and Security Bank
The main advantage of trading using opposite House Of and Security Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if House Of position performs unexpectedly, Security Bank 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 Security Bank will offset losses from the drop in Security Bank's long position.House Of vs. Converge Information Communications | House Of vs. Allhome Corp | House Of vs. Top Frontier Investment | House Of vs. Swift Foods |
Security Bank vs. Robinsons Retail Holdings | Security Bank vs. Apex Mining Co | Security Bank vs. Lepanto Consolidated Mining | Security Bank vs. Metro Retail Stores |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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