Correlation Between Coda Octopus and International Money
Can any of the company-specific risk be diversified away by investing in both Coda Octopus and International Money 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 Coda Octopus and International Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coda Octopus Group and International Money Express, you can compare the effects of market volatilities on Coda Octopus and International Money 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 Coda Octopus with a short position of International Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coda Octopus and International Money.
Diversification Opportunities for Coda Octopus and International Money
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coda and International is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Coda Octopus Group and International Money Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Money and Coda Octopus 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 Coda Octopus Group are associated (or correlated) with International Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Money has no effect on the direction of Coda Octopus i.e., Coda Octopus and International Money go up and down completely randomly.
Pair Corralation between Coda Octopus and International Money
Given the investment horizon of 90 days Coda Octopus Group is expected to generate 1.43 times more return on investment than International Money. However, Coda Octopus is 1.43 times more volatile than International Money Express. It trades about 0.27 of its potential returns per unit of risk. International Money Express is currently generating about 0.06 per unit of risk. If you would invest 550.00 in Coda Octopus Group on January 18, 2024 and sell it today you would earn a total of 73.00 from holding Coda Octopus Group or generate 13.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Coda Octopus Group vs. International Money Express
Performance |
Timeline |
Coda Octopus Group |
International Money |
Coda Octopus and International Money Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coda Octopus and International Money
The main advantage of trading using opposite Coda Octopus and International Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coda Octopus position performs unexpectedly, International Money 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 International Money will offset losses from the drop in International Money's long position.Coda Octopus vs. Ducommun Incorporated | Coda Octopus vs. Park Electrochemical | Coda Octopus vs. Kaman | Coda Octopus vs. National Presto Industries |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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