Correlation Between B Communications and SmarTone Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both B Communications and SmarTone Telecommunicatio 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 B Communications and SmarTone Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Communications and SmarTone Telecommunications Holdings, you can compare the effects of market volatilities on B Communications and SmarTone Telecommunicatio 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 B Communications with a short position of SmarTone Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Communications and SmarTone Telecommunicatio.
Diversification Opportunities for B Communications and SmarTone Telecommunicatio
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BCOMF and SmarTone is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding B Communications and SmarTone Telecommunications Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmarTone Telecommunicatio and B Communications 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 B Communications are associated (or correlated) with SmarTone Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmarTone Telecommunicatio has no effect on the direction of B Communications i.e., B Communications and SmarTone Telecommunicatio go up and down completely randomly.
Pair Corralation between B Communications and SmarTone Telecommunicatio
Assuming the 90 days horizon B Communications is expected to generate 3.68 times more return on investment than SmarTone Telecommunicatio. However, B Communications is 3.68 times more volatile than SmarTone Telecommunications Holdings. It trades about 0.19 of its potential returns per unit of risk. SmarTone Telecommunications Holdings is currently generating about 0.13 per unit of risk. If you would invest 593.00 in B Communications on September 3, 2025 and sell it today you would earn a total of 142.00 from holding B Communications or generate 23.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
B Communications vs. SmarTone Telecommunications Ho
Performance |
| Timeline |
| B Communications |
| SmarTone Telecommunicatio |
B Communications and SmarTone Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Communications and SmarTone Telecommunicatio
The main advantage of trading using opposite B Communications and SmarTone Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Communications position performs unexpectedly, SmarTone Telecommunicatio 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 SmarTone Telecommunicatio will offset losses from the drop in SmarTone Telecommunicatio's long position.| B Communications vs. CleanTech Lithium Plc | B Communications vs. Teradata Corp | B Communications vs. Cleantech Power Corp | B Communications vs. Verde Clean Fuels |
| SmarTone Telecommunicatio vs. Drugs Made In | SmarTone Telecommunicatio vs. Interplay Entertainment Corp | SmarTone Telecommunicatio vs. Canlan Ice Sports | SmarTone Telecommunicatio vs. Bangkok Dusit Medical |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |