Correlation Between Grand Ocean and Asia Electronic
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and Asia Electronic 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 Grand Ocean and Asia Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and Asia Electronic Material, you can compare the effects of market volatilities on Grand Ocean and Asia Electronic 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 Grand Ocean with a short position of Asia Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and Asia Electronic.
Diversification Opportunities for Grand Ocean and Asia Electronic
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grand and Asia is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and Asia Electronic Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Electronic Material and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with Asia Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Electronic Material has no effect on the direction of Grand Ocean i.e., Grand Ocean and Asia Electronic go up and down completely randomly.
Pair Corralation between Grand Ocean and Asia Electronic
Assuming the 90 days trading horizon Grand Ocean Retail is expected to generate 1.67 times more return on investment than Asia Electronic. However, Grand Ocean is 1.67 times more volatile than Asia Electronic Material. It trades about 0.09 of its potential returns per unit of risk. Asia Electronic Material is currently generating about -0.02 per unit of risk. If you would invest 920.00 in Grand Ocean Retail on September 3, 2024 and sell it today you would earn a total of 355.00 from holding Grand Ocean Retail or generate 38.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. Asia Electronic Material
Performance |
| Timeline |
| Grand Ocean Retail |
| Asia Electronic Material |
Grand Ocean and Asia Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and Asia Electronic
The main advantage of trading using opposite Grand Ocean and Asia Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, Asia Electronic 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 Asia Electronic will offset losses from the drop in Asia Electronic's long position.| Grand Ocean vs. First Steamship Co | Grand Ocean vs. Far Eastern Department | Grand Ocean vs. LongDa Construction Development | Grand Ocean vs. Collins Co |
| Asia Electronic vs. Hon Hai Precision | Asia Electronic vs. Delta Electronics | Asia Electronic vs. LARGAN Precision Co | Asia Electronic vs. AU Optronics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |