Correlation Between ASTORY CoLtd and Industrial Bank
Can any of the company-specific risk be diversified away by investing in both ASTORY CoLtd and Industrial Bank 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 ASTORY CoLtd and Industrial Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTORY CoLtd and Industrial Bank, you can compare the effects of market volatilities on ASTORY CoLtd and Industrial Bank 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 ASTORY CoLtd with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTORY CoLtd and Industrial Bank.
Diversification Opportunities for ASTORY CoLtd and Industrial Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASTORY and Industrial is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ASTORY CoLtd and Industrial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and ASTORY CoLtd 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 ASTORY CoLtd are associated (or correlated) with Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of ASTORY CoLtd i.e., ASTORY CoLtd and Industrial Bank go up and down completely randomly.
Pair Corralation between ASTORY CoLtd and Industrial Bank
Assuming the 90 days trading horizon ASTORY CoLtd is expected to generate 2.78 times more return on investment than Industrial Bank. However, ASTORY CoLtd is 2.78 times more volatile than Industrial Bank. It trades about 0.19 of its potential returns per unit of risk. Industrial Bank is currently generating about 0.02 per unit of risk. If you would invest 693,000 in ASTORY CoLtd on September 12, 2024 and sell it today you would earn a total of 133,000 from holding ASTORY CoLtd or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASTORY CoLtd vs. Industrial Bank
Performance |
| Timeline |
| ASTORY CoLtd |
| Industrial Bank |
ASTORY CoLtd and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTORY CoLtd and Industrial Bank
The main advantage of trading using opposite ASTORY CoLtd and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTORY CoLtd position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| ASTORY CoLtd vs. Cube Entertainment | ASTORY CoLtd vs. PlayD Co | ASTORY CoLtd vs. Neungyule Education | ASTORY CoLtd vs. Solution Advanced Technology |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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