Correlation Between Aurelius Technologies and ES Ceramics
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies and ES Ceramics 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 Aurelius Technologies and ES Ceramics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelius Technologies Bhd and ES Ceramics Technology, you can compare the effects of market volatilities on Aurelius Technologies and ES Ceramics 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 Aurelius Technologies with a short position of ES Ceramics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and ES Ceramics.
Diversification Opportunities for Aurelius Technologies and ES Ceramics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurelius and 0100 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd and ES Ceramics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES Ceramics Technology and Aurelius Technologies 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 Aurelius Technologies Bhd are associated (or correlated) with ES Ceramics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES Ceramics Technology has no effect on the direction of Aurelius Technologies i.e., Aurelius Technologies and ES Ceramics go up and down completely randomly.
Pair Corralation between Aurelius Technologies and ES Ceramics
Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to under-perform the ES Ceramics. But the stock apears to be less risky and, when comparing its historical volatility, Aurelius Technologies Bhd is 1.1 times less risky than ES Ceramics. The stock trades about -0.02 of its potential returns per unit of risk. The ES Ceramics Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 15.00 in ES Ceramics Technology on August 29, 2024 and sell it today you would earn a total of 0.00 from holding ES Ceramics Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. ES Ceramics Technology
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| ES Ceramics Technology |
Aurelius Technologies and ES Ceramics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and ES Ceramics
The main advantage of trading using opposite Aurelius Technologies and ES Ceramics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies position performs unexpectedly, ES Ceramics 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 ES Ceramics will offset losses from the drop in ES Ceramics' long position.| Aurelius Technologies vs. PIE Industrial Bhd | Aurelius Technologies vs. Binasat Communications Bhd | Aurelius Technologies vs. YX Precious Metals | Aurelius Technologies vs. Central Industrial Corp |
| ES Ceramics vs. Digistar Bhd | ES Ceramics vs. Minetech Resources Bhd | ES Ceramics vs. OpenSys M Bhd | ES Ceramics vs. Insas 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |