Correlation Between Asian Alliance and Asphere Innovations
Can any of the company-specific risk be diversified away by investing in both Asian Alliance and Asphere Innovations 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 Asian Alliance and Asphere Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asian Alliance International and Asphere Innovations Public, you can compare the effects of market volatilities on Asian Alliance and Asphere Innovations 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 Asian Alliance with a short position of Asphere Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Alliance and Asphere Innovations.
Diversification Opportunities for Asian Alliance and Asphere Innovations
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asian and Asphere is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Asian Alliance International and Asphere Innovations Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asphere Innovations and Asian Alliance 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 Asian Alliance International are associated (or correlated) with Asphere Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asphere Innovations has no effect on the direction of Asian Alliance i.e., Asian Alliance and Asphere Innovations go up and down completely randomly.
Pair Corralation between Asian Alliance and Asphere Innovations
Assuming the 90 days trading horizon Asian Alliance International is expected to generate 0.64 times more return on investment than Asphere Innovations. However, Asian Alliance International is 1.56 times less risky than Asphere Innovations. It trades about -0.17 of its potential returns per unit of risk. Asphere Innovations Public is currently generating about -0.22 per unit of risk. If you would invest 615.00 in Asian Alliance International on September 4, 2024 and sell it today you would lose (45.00) from holding Asian Alliance International or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Alliance International vs. Asphere Innovations Public
Performance |
| Timeline |
| Asian Alliance Inter |
| Asphere Innovations |
Asian Alliance and Asphere Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Alliance and Asphere Innovations
The main advantage of trading using opposite Asian Alliance and Asphere Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Alliance position performs unexpectedly, Asphere Innovations 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 Asphere Innovations will offset losses from the drop in Asphere Innovations' long position.| Asian Alliance vs. Kingsmen CMTI Public | Asian Alliance vs. Hydrotek Public | Asian Alliance vs. Karmarts Public | Asian Alliance vs. KC Metalsheet Public |
| Asphere Innovations vs. SRI TRANG GLOVES | Asphere Innovations vs. AEON Thana Sinsap | Asphere Innovations vs. Asian Alliance International | Asphere Innovations vs. Sikarin Public |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |