Correlation Between Aeon Credit and Coraza Integrated
Can any of the company-specific risk be diversified away by investing in both Aeon Credit and Coraza Integrated 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 Aeon Credit and Coraza Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeon Credit Service and Coraza Integrated Technology, you can compare the effects of market volatilities on Aeon Credit and Coraza Integrated 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 Aeon Credit with a short position of Coraza Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeon Credit and Coraza Integrated.
Diversification Opportunities for Aeon Credit and Coraza Integrated
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aeon and Coraza is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aeon Credit Service and Coraza Integrated Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coraza Integrated and Aeon Credit 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 Aeon Credit Service are associated (or correlated) with Coraza Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coraza Integrated has no effect on the direction of Aeon Credit i.e., Aeon Credit and Coraza Integrated go up and down completely randomly.
Pair Corralation between Aeon Credit and Coraza Integrated
Assuming the 90 days trading horizon Aeon Credit Service is expected to generate 0.31 times more return on investment than Coraza Integrated. However, Aeon Credit Service is 3.21 times less risky than Coraza Integrated. It trades about 0.03 of its potential returns per unit of risk. Coraza Integrated Technology is currently generating about -0.01 per unit of risk. If you would invest 587.00 in Aeon Credit Service on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Aeon Credit Service or generate 15.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeon Credit Service vs. Coraza Integrated Technology
Performance |
| Timeline |
| Aeon Credit Service |
| Coraza Integrated |
Aeon Credit and Coraza Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeon Credit and Coraza Integrated
The main advantage of trading using opposite Aeon Credit and Coraza Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeon Credit position performs unexpectedly, Coraza Integrated 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 Coraza Integrated will offset losses from the drop in Coraza Integrated's long position.| Aeon Credit vs. Minetech Resources Bhd | Aeon Credit vs. Swift Haulage Bhd | Aeon Credit vs. Insas Bhd | Aeon Credit vs. Bina Darulaman Bhd |
| Coraza Integrated vs. Press Metal Bhd | Coraza Integrated vs. CSC Steel Holdings | Coraza Integrated vs. Malaysia Steel Works | Coraza Integrated vs. Choo Bee Metal |
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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