Correlation Between AEON MALL and FRASERS PROPERTY
Can any of the company-specific risk be diversified away by investing in both AEON MALL and FRASERS PROPERTY 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 AEON MALL and FRASERS PROPERTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON MALL LTD and FRASERS PROPERTY, you can compare the effects of market volatilities on AEON MALL and FRASERS PROPERTY 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 AEON MALL with a short position of FRASERS PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON MALL and FRASERS PROPERTY.
Diversification Opportunities for AEON MALL and FRASERS PROPERTY
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between AEON and FRASERS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AEON MALL LTD and FRASERS PROPERTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRASERS PROPERTY and AEON MALL 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 AEON MALL LTD are associated (or correlated) with FRASERS PROPERTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRASERS PROPERTY has no effect on the direction of AEON MALL i.e., AEON MALL and FRASERS PROPERTY go up and down completely randomly.
Pair Corralation between AEON MALL and FRASERS PROPERTY
Assuming the 90 days horizon AEON MALL LTD is expected to under-perform the FRASERS PROPERTY. But the stock apears to be less risky and, when comparing its historical volatility, AEON MALL LTD is 1.85 times less risky than FRASERS PROPERTY. The stock trades about -0.09 of its potential returns per unit of risk. The FRASERS PROPERTY is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 60.00 in FRASERS PROPERTY on November 3, 2024 and sell it today you would earn a total of 0.00 from holding FRASERS PROPERTY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON MALL LTD vs. FRASERS PROPERTY
Performance |
| Timeline |
| AEON MALL LTD |
| FRASERS PROPERTY |
AEON MALL and FRASERS PROPERTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON MALL and FRASERS PROPERTY
The main advantage of trading using opposite AEON MALL and FRASERS PROPERTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON MALL position performs unexpectedly, FRASERS PROPERTY 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 FRASERS PROPERTY will offset losses from the drop in FRASERS PROPERTY's long position.| AEON MALL vs. Yuexiu Transport Infrastructure | AEON MALL vs. Flutter Entertainment PLC | AEON MALL vs. TOWNSQUARE MEDIA INC | AEON MALL vs. PARKEN Sport Entertainment |
| FRASERS PROPERTY vs. QUEEN S ROAD | FRASERS PROPERTY vs. SAFEROADS HLDGS | FRASERS PROPERTY vs. Eastman Chemical | FRASERS PROPERTY vs. Fukuyama Transporting Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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