Correlation Between TROPHY GAMES and AEON MALL

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Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and AEON MALL 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 TROPHY GAMES and AEON MALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and AEON MALL LTD, you can compare the effects of market volatilities on TROPHY GAMES and AEON MALL 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 TROPHY GAMES with a short position of AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and AEON MALL.

Diversification Opportunities for TROPHY GAMES and AEON MALL

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between TROPHY and AEON is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL LTD and TROPHY GAMES 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 TROPHY GAMES DEV are associated (or correlated) with AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and AEON MALL go up and down completely randomly.

Pair Corralation between TROPHY GAMES and AEON MALL

Assuming the 90 days horizon TROPHY GAMES is expected to generate 2.57 times less return on investment than AEON MALL. But when comparing it to its historical volatility, TROPHY GAMES DEV is 1.41 times less risky than AEON MALL. It trades about 0.14 of its potential returns per unit of risk. AEON MALL LTD is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  1,175  in AEON MALL LTD on December 6, 2024 and sell it today you would earn a total of  275.00  from holding AEON MALL LTD or generate 23.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

TROPHY GAMES DEV  vs.  AEON MALL LTD

 Performance 
       Timeline  
TROPHY GAMES DEV 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days TROPHY GAMES DEV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TROPHY GAMES is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
AEON MALL LTD 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AEON MALL LTD are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AEON MALL reported solid returns over the last few months and may actually be approaching a breakup point.

TROPHY GAMES and AEON MALL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TROPHY GAMES and AEON MALL

The main advantage of trading using opposite TROPHY GAMES and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, AEON MALL 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 MALL will offset losses from the drop in AEON MALL's long position.
The idea behind TROPHY GAMES DEV and AEON MALL LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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