Correlation Between Al Aqar and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Al Aqar and Aurelius Technologies 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 Al Aqar and Aurelius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Al Aqar Healthcare and Aurelius Technologies Bhd, you can compare the effects of market volatilities on Al Aqar and Aurelius Technologies 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 Al Aqar with a short position of Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Aurelius Technologies.
Diversification Opportunities for Al Aqar and Aurelius Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 5116 and Aurelius is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies Bhd and Al Aqar 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 Al Aqar Healthcare are associated (or correlated) with Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Al Aqar i.e., Al Aqar and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Al Aqar and Aurelius Technologies
Assuming the 90 days trading horizon Al Aqar is expected to generate 2.84 times less return on investment than Aurelius Technologies. But when comparing it to its historical volatility, Al Aqar Healthcare is 2.35 times less risky than Aurelius Technologies. It trades about 0.05 of its potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 185.00 in Aurelius Technologies Bhd on September 12, 2024 and sell it today you would earn a total of 120.00 from holding Aurelius Technologies Bhd or generate 64.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Aqar Healthcare vs. Aurelius Technologies Bhd
Performance |
| Timeline |
| Al Aqar Healthcare |
| Aurelius Technologies Bhd |
Al Aqar and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Aqar and Aurelius Technologies
The main advantage of trading using opposite Al Aqar and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar position performs unexpectedly, Aurelius Technologies 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' long position.| Al Aqar vs. PMB Technology Bhd | Al Aqar vs. Tex Cycle Technology | Al Aqar vs. Cosmos Technology International | Al Aqar vs. YX Precious Metals |
| Aurelius Technologies vs. MI Technovation Bhd | Aurelius Technologies vs. Globetronics Tech Bhd | Aurelius Technologies vs. Al Aqar Healthcare | Aurelius Technologies vs. PMB Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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