Correlation Between Aurelius Technologies and Farm Price
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies and Farm Price 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 Farm Price 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 Farm Price Holdings, you can compare the effects of market volatilities on Aurelius Technologies and Farm Price 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 Farm Price. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and Farm Price.
Diversification Opportunities for Aurelius Technologies and Farm Price
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurelius and Farm is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd and Farm Price Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farm Price Holdings 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 Farm Price. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farm Price Holdings has no effect on the direction of Aurelius Technologies i.e., Aurelius Technologies and Farm Price go up and down completely randomly.
Pair Corralation between Aurelius Technologies and Farm Price
Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to generate 0.81 times more return on investment than Farm Price. However, Aurelius Technologies Bhd is 1.23 times less risky than Farm Price. It trades about 0.0 of its potential returns per unit of risk. Farm Price Holdings is currently generating about -0.09 per unit of risk. If you would invest 346.00 in Aurelius Technologies Bhd on October 17, 2024 and sell it today you would lose (12.00) from holding Aurelius Technologies Bhd or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. Farm Price Holdings
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| Farm Price Holdings |
Aurelius Technologies and Farm Price Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and Farm Price
The main advantage of trading using opposite Aurelius Technologies and Farm Price positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies position performs unexpectedly, Farm Price 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 Farm Price will offset losses from the drop in Farm Price's long position.| Aurelius Technologies vs. Lyc Healthcare Bhd | Aurelius Technologies vs. PMB Technology Bhd | Aurelius Technologies vs. Oriental Food Industries | Aurelius Technologies vs. Berjaya Food Bhd |
| Farm Price vs. Cloudpoint Technology Berhad | Farm Price vs. Systech Bhd | Farm Price vs. Aurelius Technologies Bhd | Farm Price vs. Cosmos Technology International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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