Correlation Between Transimex Transportation and Construction
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation and Construction 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 Transimex Transportation and Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transimex Transportation JSC and Construction And Investment, you can compare the effects of market volatilities on Transimex Transportation and Construction 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 Transimex Transportation with a short position of Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and Construction.
Diversification Opportunities for Transimex Transportation and Construction
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transimex and Construction is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and Construction And Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Construction And Inv and Transimex Transportation 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 Transimex Transportation JSC are associated (or correlated) with Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Construction And Inv has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and Construction go up and down completely randomly.
Pair Corralation between Transimex Transportation and Construction
Assuming the 90 days trading horizon Transimex Transportation JSC is expected to generate 0.8 times more return on investment than Construction. However, Transimex Transportation JSC is 1.25 times less risky than Construction. It trades about -0.15 of its potential returns per unit of risk. Construction And Investment is currently generating about -0.22 per unit of risk. If you would invest 1,740,000 in Transimex Transportation JSC on October 26, 2024 and sell it today you would lose (50,000) from holding Transimex Transportation JSC or give up 2.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 76.19% |
Values | Daily Returns |
Transimex Transportation JSC vs. Construction And Investment
Performance |
Timeline |
Transimex Transportation |
Construction And Inv |
Transimex Transportation and Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Transimex Transportation and Construction
The main advantage of trading using opposite Transimex Transportation and Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation position performs unexpectedly, Construction 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 Construction will offset losses from the drop in Construction's long position.Transimex Transportation vs. Ba Ria Thermal | Transimex Transportation vs. CEO Group JSC | Transimex Transportation vs. Pha Le Plastics | Transimex Transportation vs. Tay Ninh Rubber |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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