Correlation Between Aroundtown and Ascendas India
Can any of the company-specific risk be diversified away by investing in both Aroundtown and Ascendas India 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 Aroundtown and Ascendas India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aroundtown SA and Ascendas India Trust, you can compare the effects of market volatilities on Aroundtown and Ascendas India 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 Aroundtown with a short position of Ascendas India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aroundtown and Ascendas India.
Diversification Opportunities for Aroundtown and Ascendas India
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aroundtown and Ascendas is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aroundtown SA and Ascendas India Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendas India Trust and Aroundtown 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 Aroundtown SA are associated (or correlated) with Ascendas India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendas India Trust has no effect on the direction of Aroundtown i.e., Aroundtown and Ascendas India go up and down completely randomly.
Pair Corralation between Aroundtown and Ascendas India
Assuming the 90 days horizon Aroundtown SA is expected to generate 1.09 times more return on investment than Ascendas India. However, Aroundtown is 1.09 times more volatile than Ascendas India Trust. It trades about 0.06 of its potential returns per unit of risk. Ascendas India Trust is currently generating about 0.01 per unit of risk. If you would invest 144.00 in Aroundtown SA on August 24, 2024 and sell it today you would earn a total of 136.00 from holding Aroundtown SA or generate 94.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.45% |
| Values | Daily Returns |
Aroundtown SA vs. Ascendas India Trust
Performance |
| Timeline |
| Aroundtown SA |
| Ascendas India Trust |
Aroundtown and Ascendas India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aroundtown and Ascendas India
The main advantage of trading using opposite Aroundtown and Ascendas India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aroundtown position performs unexpectedly, Ascendas India 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 Ascendas India will offset losses from the drop in Ascendas India's long position.| Aroundtown vs. Asia Pptys | Aroundtown vs. Adler Group SA | Aroundtown vs. Aztec Land Comb | Aroundtown vs. Ambase Corp |
| Ascendas India vs. IRSA Inversiones Y | Ascendas India vs. Anywhere Real Estate | Ascendas India vs. Newmark Group | Ascendas India vs. Wharf Real Estate |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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