Correlation Between Awanbiru Technology and AirAsia X
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and AirAsia X 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 Awanbiru Technology and AirAsia X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awanbiru Technology Bhd and AirAsia X Bhd, you can compare the effects of market volatilities on Awanbiru Technology and AirAsia X 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 Awanbiru Technology with a short position of AirAsia X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and AirAsia X.
Diversification Opportunities for Awanbiru Technology and AirAsia X
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Awanbiru and AirAsia is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and AirAsia X Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirAsia X Bhd and Awanbiru Technology 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 Awanbiru Technology Bhd are associated (or correlated) with AirAsia X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirAsia X Bhd has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and AirAsia X go up and down completely randomly.
Pair Corralation between Awanbiru Technology and AirAsia X
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 2.31 times more return on investment than AirAsia X. However, Awanbiru Technology is 2.31 times more volatile than AirAsia X Bhd. It trades about 0.15 of its potential returns per unit of risk. AirAsia X Bhd is currently generating about -0.26 per unit of risk. If you would invest 32.00 in Awanbiru Technology Bhd on October 22, 2024 and sell it today you would earn a total of 4.00 from holding Awanbiru Technology Bhd or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. AirAsia X Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| AirAsia X Bhd |
Awanbiru Technology and AirAsia X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and AirAsia X
The main advantage of trading using opposite Awanbiru Technology and AirAsia X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, AirAsia X 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 AirAsia X will offset losses from the drop in AirAsia X's long position.| Awanbiru Technology vs. Cengild Medical Berhad | Awanbiru Technology vs. Aeon Credit Service | Awanbiru Technology vs. Icon Offshore Bhd | Awanbiru Technology vs. Senheng New Retail |
| AirAsia X vs. Eonmetall Group Bhd | AirAsia X vs. Awanbiru Technology Bhd | AirAsia X vs. Apollo Food Holdings | AirAsia X vs. Hong Leong Bank |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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