Correlation Between 3BB INTERNET and Asia Medical
Can any of the company-specific risk be diversified away by investing in both 3BB INTERNET and Asia Medical 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 3BB INTERNET and Asia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3BB INTERNET INFRASTRUCTURE and Asia Medical Agricultural, you can compare the effects of market volatilities on 3BB INTERNET and Asia Medical 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 3BB INTERNET with a short position of Asia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3BB INTERNET and Asia Medical.
Diversification Opportunities for 3BB INTERNET and Asia Medical
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between 3BB and Asia is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding 3BB INTERNET INFRASTRUCTURE and Asia Medical Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Medical Agricultural and 3BB INTERNET 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 3BB INTERNET INFRASTRUCTURE are associated (or correlated) with Asia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Medical Agricultural has no effect on the direction of 3BB INTERNET i.e., 3BB INTERNET and Asia Medical go up and down completely randomly.
Pair Corralation between 3BB INTERNET and Asia Medical
Assuming the 90 days trading horizon 3BB INTERNET INFRASTRUCTURE is expected to generate 0.51 times more return on investment than Asia Medical. However, 3BB INTERNET INFRASTRUCTURE is 1.97 times less risky than Asia Medical. It trades about -0.02 of its potential returns per unit of risk. Asia Medical Agricultural is currently generating about -0.04 per unit of risk. If you would invest 655.00 in 3BB INTERNET INFRASTRUCTURE on September 2, 2024 and sell it today you would lose (90.00) from holding 3BB INTERNET INFRASTRUCTURE or give up 13.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
3BB INTERNET INFRASTRUCTURE vs. Asia Medical Agricultural
Performance |
| Timeline |
| 3BB INTERNET INFRAST |
| Asia Medical Agricultural |
3BB INTERNET and Asia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3BB INTERNET and Asia Medical
The main advantage of trading using opposite 3BB INTERNET and Asia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3BB INTERNET position performs unexpectedly, Asia Medical 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 Medical will offset losses from the drop in Asia Medical's long position.| 3BB INTERNET vs. Interlink Communication Public | 3BB INTERNET vs. Ally Leasehold Real | 3BB INTERNET vs. Micro Leasing Public | 3BB INTERNET vs. Charoen Pokphand Foods |
| Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public | Asia Medical vs. The Erawan Group | Asia Medical vs. Autocorp Holding Public |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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