Correlation Between Access Bio and Tuksu Engineering
Can any of the company-specific risk be diversified away by investing in both Access Bio and Tuksu Engineering 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 Access Bio and Tuksu Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and Tuksu Engineering ConstructionLtd, you can compare the effects of market volatilities on Access Bio and Tuksu Engineering 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 Access Bio with a short position of Tuksu Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and Tuksu Engineering.
Diversification Opportunities for Access Bio and Tuksu Engineering
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Access and Tuksu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and Tuksu Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuksu Engineering and Access Bio 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 Access Bio are associated (or correlated) with Tuksu Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuksu Engineering has no effect on the direction of Access Bio i.e., Access Bio and Tuksu Engineering go up and down completely randomly.
Pair Corralation between Access Bio and Tuksu Engineering
Assuming the 90 days trading horizon Access Bio is expected to under-perform the Tuksu Engineering. In addition to that, Access Bio is 1.29 times more volatile than Tuksu Engineering ConstructionLtd. It trades about -0.02 of its total potential returns per unit of risk. Tuksu Engineering ConstructionLtd is currently generating about -0.02 per unit of volatility. If you would invest 739,000 in Tuksu Engineering ConstructionLtd on August 28, 2024 and sell it today you would lose (106,000) from holding Tuksu Engineering ConstructionLtd or give up 14.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. Tuksu Engineering Construction
Performance |
| Timeline |
| Access Bio |
| Tuksu Engineering |
Access Bio and Tuksu Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and Tuksu Engineering
The main advantage of trading using opposite Access Bio and Tuksu Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, Tuksu Engineering 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 Tuksu Engineering will offset losses from the drop in Tuksu Engineering's long position.| Access Bio vs. Dongbang Transport Logistics | Access Bio vs. Taegu Broadcasting | Access Bio vs. Ssangyong Information Communication | Access Bio vs. Nable Communications |
| Tuksu Engineering vs. Samsung Electronics Co | Tuksu Engineering vs. Samsung Electronics Co | Tuksu Engineering vs. Hyundai Motor Co | Tuksu Engineering vs. Hyundai Motor |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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