Correlation Between Insas Bhd and Aeon Credit
Can any of the company-specific risk be diversified away by investing in both Insas Bhd and Aeon Credit 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 Insas Bhd and Aeon Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and Aeon Credit Service, you can compare the effects of market volatilities on Insas Bhd and Aeon Credit 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 Insas Bhd with a short position of Aeon Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and Aeon Credit.
Diversification Opportunities for Insas Bhd and Aeon Credit
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Insas and Aeon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd and Aeon Credit Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Credit Service and Insas Bhd 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 Insas Bhd are associated (or correlated) with Aeon Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Credit Service has no effect on the direction of Insas Bhd i.e., Insas Bhd and Aeon Credit go up and down completely randomly.
Pair Corralation between Insas Bhd and Aeon Credit
Assuming the 90 days trading horizon Insas Bhd is expected to under-perform the Aeon Credit. In addition to that, Insas Bhd is 1.69 times more volatile than Aeon Credit Service. It trades about -0.24 of its total potential returns per unit of risk. Aeon Credit Service is currently generating about -0.16 per unit of volatility. If you would invest 700.00 in Aeon Credit Service on August 27, 2024 and sell it today you would lose (20.00) from holding Aeon Credit Service or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insas Bhd vs. Aeon Credit Service
Performance |
| Timeline |
| Insas Bhd |
| Aeon Credit Service |
Insas Bhd and Aeon Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and Aeon Credit
The main advantage of trading using opposite Insas Bhd and Aeon Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd position performs unexpectedly, Aeon Credit 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 Aeon Credit will offset losses from the drop in Aeon Credit's long position.| Insas Bhd vs. Malayan Banking Bhd | Insas Bhd vs. Public Bank Bhd | Insas Bhd vs. Petronas Chemicals Group | Insas Bhd vs. Tenaga Nasional Bhd |
| Aeon Credit vs. Press Metal Bhd | Aeon Credit vs. Malayan Banking Bhd | Aeon Credit vs. Cengild Medical Berhad | Aeon Credit vs. Public Bank Bhd |
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
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |