Correlation Between Straits Trading and Joint Stock
Can any of the company-specific risk be diversified away by investing in both Straits Trading and Joint Stock 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 Straits Trading and Joint Stock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straits Trading and Joint Stock, you can compare the effects of market volatilities on Straits Trading and Joint Stock 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 Trading with a short position of Joint Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straits Trading and Joint Stock.
Diversification Opportunities for Straits Trading and Joint Stock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Straits and Joint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Straits Trading and Joint Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Stock and Straits Trading 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 Trading are associated (or correlated) with Joint Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Stock has no effect on the direction of Straits Trading i.e., Straits Trading and Joint Stock go up and down completely randomly.
Pair Corralation between Straits Trading and Joint Stock
If you would invest 2,037 in Straits Trading on September 7, 2025 and sell it today you would earn a total of 0.00 from holding Straits Trading or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Straits Trading vs. Joint Stock
Performance |
| Timeline |
| Straits Trading |
| Joint Stock |
Straits Trading and Joint Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straits Trading and Joint Stock
The main advantage of trading using opposite Straits Trading and Joint Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straits Trading position performs unexpectedly, Joint Stock 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 Joint Stock will offset losses from the drop in Joint Stock's long position.| Straits Trading vs. BHP Group Limited | Straits Trading vs. BHP Group Limited | Straits Trading vs. Rio Tinto Group | Straits Trading vs. Rio Tinto Group |
| Joint Stock vs. Cleantech Power Corp | Joint Stock vs. On4 Communications | Joint Stock vs. DATA Communications Management | Joint Stock vs. CVW CleanTech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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