Correlation Between Aurelius Technologies and Axiata Group
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies and Axiata Group 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 Axiata Group 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 Axiata Group Bhd, you can compare the effects of market volatilities on Aurelius Technologies and Axiata Group 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 Axiata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and Axiata Group.
Diversification Opportunities for Aurelius Technologies and Axiata Group
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aurelius and Axiata is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd and Axiata Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axiata Group Bhd 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 Axiata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axiata Group Bhd has no effect on the direction of Aurelius Technologies i.e., Aurelius Technologies and Axiata Group go up and down completely randomly.
Pair Corralation between Aurelius Technologies and Axiata Group
Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to generate 1.35 times more return on investment than Axiata Group. However, Aurelius Technologies is 1.35 times more volatile than Axiata Group Bhd. It trades about 0.0 of its potential returns per unit of risk. Axiata Group Bhd is currently generating about -0.05 per unit of risk. If you would invest 301.00 in Aurelius Technologies Bhd on September 2, 2024 and sell it today you would lose (4.00) from holding Aurelius Technologies Bhd or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. Axiata Group Bhd
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| Axiata Group Bhd |
Aurelius Technologies and Axiata Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and Axiata Group
The main advantage of trading using opposite Aurelius Technologies and Axiata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies position performs unexpectedly, Axiata Group 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 Axiata Group will offset losses from the drop in Axiata Group's long position.| Aurelius Technologies vs. TAS Offshore Bhd | Aurelius Technologies vs. CPE Technology Berhad | Aurelius Technologies vs. DC HEALTHCARE HOLDINGS | Aurelius Technologies vs. Computer Forms Bhd |
| Axiata Group vs. Digistar Bhd | Axiata Group vs. Minetech Resources Bhd | Axiata Group vs. Swift Haulage Bhd | Axiata Group vs. Bina Darulaman 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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