Correlation Between Asian Alliance and Mono Next
Can any of the company-specific risk be diversified away by investing in both Asian Alliance and Mono Next 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 Mono Next 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 Mono Next Public, you can compare the effects of market volatilities on Asian Alliance and Mono Next 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 Mono Next. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Alliance and Mono Next.
Diversification Opportunities for Asian Alliance and Mono Next
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asian and Mono is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Asian Alliance International and Mono Next Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mono Next Public 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 Mono Next. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mono Next Public has no effect on the direction of Asian Alliance i.e., Asian Alliance and Mono Next go up and down completely randomly.
Pair Corralation between Asian Alliance and Mono Next
Assuming the 90 days trading horizon Asian Alliance is expected to generate 17.21 times less return on investment than Mono Next. But when comparing it to its historical volatility, Asian Alliance International is 1.4 times less risky than Mono Next. It trades about 0.0 of its potential returns per unit of risk. Mono Next Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Mono Next Public on September 4, 2024 and sell it today you would earn a total of 87.00 from holding Mono Next Public or generate 56.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Alliance International vs. Mono Next Public
Performance |
| Timeline |
| Asian Alliance Inter |
| Mono Next Public |
Asian Alliance and Mono Next Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Alliance and Mono Next
The main advantage of trading using opposite Asian Alliance and Mono Next positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Alliance position performs unexpectedly, Mono Next 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 Mono Next will offset losses from the drop in Mono Next's long position.| Asian Alliance vs. Kingsmen CMTI Public | Asian Alliance vs. Hydrotek Public | Asian Alliance vs. Karmarts Public | Asian Alliance vs. KC Metalsheet Public |
| Mono Next vs. SRI TRANG GLOVES | Mono Next vs. AEON Thana Sinsap | Mono Next vs. Asian Alliance International | Mono Next 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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