Correlation Between Asia Cement and Goldsun Building
Can any of the company-specific risk be diversified away by investing in both Asia Cement and Goldsun Building 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 Asia Cement and Goldsun Building into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Cement Corp and Goldsun Building Materials, you can compare the effects of market volatilities on Asia Cement and Goldsun Building 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 Asia Cement with a short position of Goldsun Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Cement and Goldsun Building.
Diversification Opportunities for Asia Cement and Goldsun Building
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Goldsun is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Asia Cement Corp and Goldsun Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldsun Building Mat and Asia Cement 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 Asia Cement Corp are associated (or correlated) with Goldsun Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldsun Building Mat has no effect on the direction of Asia Cement i.e., Asia Cement and Goldsun Building go up and down completely randomly.
Pair Corralation between Asia Cement and Goldsun Building
Assuming the 90 days trading horizon Asia Cement Corp is expected to under-perform the Goldsun Building. But the stock apears to be less risky and, when comparing its historical volatility, Asia Cement Corp is 1.73 times less risky than Goldsun Building. The stock trades about -0.35 of its potential returns per unit of risk. The Goldsun Building Materials is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,400 in Goldsun Building Materials on August 30, 2024 and sell it today you would lose (80.00) from holding Goldsun Building Materials or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Cement Corp vs. Goldsun Building Materials
Performance |
| Timeline |
| Asia Cement Corp |
| Goldsun Building Mat |
Asia Cement and Goldsun Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Cement and Goldsun Building
The main advantage of trading using opposite Asia Cement and Goldsun Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Cement position performs unexpectedly, Goldsun Building 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 Goldsun Building will offset losses from the drop in Goldsun Building's long position.| Asia Cement vs. Taiwan Cement Corp | Asia Cement vs. Far Eastern New | Asia Cement vs. Uni President Enterprises Corp | Asia Cement vs. Nan Ya Plastics |
| Goldsun Building vs. Cathay Real Estate | Goldsun Building vs. Huaku Development Co | Goldsun Building vs. BES Engineering Co | Goldsun Building vs. Prince Housing Development |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |