Pair Correlation Between Straits Tms and IPC

This module allows you to analyze existing cross correlation between Straits Tms and IPC. You can compare the effects of market volatilities on Straits Tms and IPC 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 Straits Tms with a short position of IPC. See also your portfolio center. Please also check ongoing floating volatility patterns of Straits Tms and IPC.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Straits Tms  vs   IPC
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Straits Tms is expected to generate 1.25 times more return on investment than IPC. However, Straits Tms is 1.25 times more volatile than IPC. It trades about 0.21 of its potential returns per unit of risk. IPC is currently generating about -0.14 per unit of risk. If you would invest  334,388  in Straits Tms on October 25, 2017 and sell it today you would earn a total of  7,950  from holding Straits Tms or generate 2.38% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Straits Tms and IPC
-0.67

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy85.71%
ValuesDaily Returns

Diversification

Excellent diversification

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

 Predicted Return Density 
      Returns