Correlation Between 1StdibsCom and Raytech Holding
Can any of the company-specific risk be diversified away by investing in both 1StdibsCom and Raytech Holding 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 1StdibsCom and Raytech Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1StdibsCom and Raytech Holding Limited, you can compare the effects of market volatilities on 1StdibsCom and Raytech Holding 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 1StdibsCom with a short position of Raytech Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1StdibsCom and Raytech Holding.
Diversification Opportunities for 1StdibsCom and Raytech Holding
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 1StdibsCom and Raytech is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding 1StdibsCom and Raytech Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytech Holding and 1StdibsCom 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 1StdibsCom are associated (or correlated) with Raytech Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytech Holding has no effect on the direction of 1StdibsCom i.e., 1StdibsCom and Raytech Holding go up and down completely randomly.
Pair Corralation between 1StdibsCom and Raytech Holding
Given the investment horizon of 90 days 1StdibsCom is expected to generate 5.71 times less return on investment than Raytech Holding. But when comparing it to its historical volatility, 1StdibsCom is 4.11 times less risky than Raytech Holding. It trades about 0.06 of its potential returns per unit of risk. Raytech Holding Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Raytech Holding Limited on April 29, 2025 and sell it today you would earn a total of 29.00 from holding Raytech Holding Limited or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1StdibsCom vs. Raytech Holding Limited
Performance |
| Timeline |
| 1StdibsCom |
| Raytech Holding |
1StdibsCom and Raytech Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1StdibsCom and Raytech Holding
The main advantage of trading using opposite 1StdibsCom and Raytech Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1StdibsCom position performs unexpectedly, Raytech Holding 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 Raytech Holding will offset losses from the drop in Raytech Holding's long position.| 1StdibsCom vs. Natural Health Trend | 1StdibsCom vs. Liquidity Services | 1StdibsCom vs. Hour Loop | 1StdibsCom vs. Centessa Pharmaceuticals PLC |
| Raytech Holding vs. Coda Octopus Group | Raytech Holding vs. United Microelectronics | Raytech Holding vs. CTS Corporation | Raytech Holding vs. Coupang LLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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