Correlation Between RS Automation and APro
Can any of the company-specific risk be diversified away by investing in both RS Automation and APro 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 RS Automation and APro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RS Automation CoLtd and APro Co, you can compare the effects of market volatilities on RS Automation and APro 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 RS Automation with a short position of APro. Check out your portfolio center. Please also check ongoing floating volatility patterns of RS Automation and APro.
Diversification Opportunities for RS Automation and APro
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 140670 and APro is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding RS Automation CoLtd and APro Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APro and RS Automation 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 RS Automation CoLtd are associated (or correlated) with APro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APro has no effect on the direction of RS Automation i.e., RS Automation and APro go up and down completely randomly.
Pair Corralation between RS Automation and APro
Assuming the 90 days trading horizon RS Automation CoLtd is expected to generate 1.89 times more return on investment than APro. However, RS Automation is 1.89 times more volatile than APro Co. It trades about 0.02 of its potential returns per unit of risk. APro Co is currently generating about -0.15 per unit of risk. If you would invest 1,648,000 in RS Automation CoLtd on November 8, 2024 and sell it today you would lose (9,000) from holding RS Automation CoLtd or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RS Automation CoLtd vs. APro Co
Performance |
| Timeline |
| RS Automation CoLtd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| APro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RS Automation and APro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RS Automation and APro
The main advantage of trading using opposite RS Automation and APro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RS Automation position performs unexpectedly, APro 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 APro will offset losses from the drop in APro's long position.| RS Automation vs. RFTech Co | RS Automation vs. Narae Nanotech Corp | RS Automation vs. Orbitech Co | RS Automation vs. PJ Metal Co |
| APro vs. A Tech Solution Co | APro vs. Moonbae Steel | APro vs. Samhyun Steel Co | APro vs. Narae Nanotech Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |