Correlation Between Xavis and Asia Economy
Can any of the company-specific risk be diversified away by investing in both Xavis and Asia Economy 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 Xavis and Asia Economy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and Asia Economy Daily, you can compare the effects of market volatilities on Xavis and Asia Economy 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 Xavis with a short position of Asia Economy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and Asia Economy.
Diversification Opportunities for Xavis and Asia Economy
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xavis and Asia is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and Asia Economy Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Economy Daily and Xavis 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 Xavis Co are associated (or correlated) with Asia Economy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Economy Daily has no effect on the direction of Xavis i.e., Xavis and Asia Economy go up and down completely randomly.
Pair Corralation between Xavis and Asia Economy
Assuming the 90 days trading horizon Xavis Co is expected to under-perform the Asia Economy. In addition to that, Xavis is 1.16 times more volatile than Asia Economy Daily. It trades about -0.18 of its total potential returns per unit of risk. Asia Economy Daily is currently generating about 0.19 per unit of volatility. If you would invest 130,000 in Asia Economy Daily on October 24, 2024 and sell it today you would earn a total of 41,500 from holding Asia Economy Daily or generate 31.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Xavis Co vs. Asia Economy Daily
Performance |
| Timeline |
| Xavis |
| Asia Economy Daily |
Xavis and Asia Economy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and Asia Economy
The main advantage of trading using opposite Xavis and Asia Economy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis position performs unexpectedly, Asia Economy 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 Asia Economy will offset losses from the drop in Asia Economy's long position.| Xavis vs. KakaoBank Corp | Xavis vs. Dgb Financial | Xavis vs. Koryo Credit Information | Xavis vs. Korean Drug Co |
| Asia Economy vs. Seoyon Topmetal Co | Asia Economy vs. Koryo Credit Information | Asia Economy vs. GS Retail Co | Asia Economy vs. Korea Information Engineering |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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