Correlation Between PKSHA TECHNOLOGY and Asahi Group
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and Asahi 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 PKSHA TECHNOLOGY and Asahi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and Asahi Group Holdings, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and Asahi 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 PKSHA TECHNOLOGY with a short position of Asahi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Asahi Group.
Diversification Opportunities for PKSHA TECHNOLOGY and Asahi Group
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PKSHA and Asahi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and Asahi Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Group Holdings and PKSHA 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 PKSHA TECHNOLOGY INC are associated (or correlated) with Asahi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Group Holdings has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Asahi Group go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and Asahi Group
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.27 times more return on investment than Asahi Group. However, PKSHA TECHNOLOGY is 1.27 times more volatile than Asahi Group Holdings. It trades about 0.21 of its potential returns per unit of risk. Asahi Group Holdings is currently generating about -0.05 per unit of risk. If you would invest 2,120 in PKSHA TECHNOLOGY INC on September 1, 2024 and sell it today you would earn a total of 320.00 from holding PKSHA TECHNOLOGY INC or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. Asahi Group Holdings
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| Asahi Group Holdings |
PKSHA TECHNOLOGY and Asahi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and Asahi Group
The main advantage of trading using opposite PKSHA TECHNOLOGY and Asahi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, Asahi 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 Asahi Group will offset losses from the drop in Asahi Group's long position.| PKSHA TECHNOLOGY vs. Liberty Broadband | PKSHA TECHNOLOGY vs. COMPUTERSHARE | PKSHA TECHNOLOGY vs. Internet Thailand PCL | PKSHA TECHNOLOGY vs. Cars Inc |
| Asahi Group vs. AOI Electronics Co | Asahi Group vs. BYD ELECTRONIC | Asahi Group vs. UMC Electronics Co | Asahi Group vs. Geely Automobile Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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