Correlation Between Ambase Corp and Ascendas India
Can any of the company-specific risk be diversified away by investing in both Ambase Corp 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 Ambase Corp and Ascendas India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambase Corp and Ascendas India Trust, you can compare the effects of market volatilities on Ambase Corp 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 Ambase Corp with a short position of Ascendas India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambase Corp and Ascendas India.
Diversification Opportunities for Ambase Corp and Ascendas India
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ambase and Ascendas is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ambase Corp 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 Ambase Corp 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 Ambase Corp 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 Ambase Corp i.e., Ambase Corp and Ascendas India go up and down completely randomly.
Pair Corralation between Ambase Corp and Ascendas India
Given the investment horizon of 90 days Ambase Corp is expected to under-perform the Ascendas India. In addition to that, Ambase Corp is 1.12 times more volatile than Ascendas India Trust. It trades about -0.02 of its total potential returns per unit of risk. Ascendas India Trust is currently generating about -0.02 per unit of volatility. If you would invest 77.00 in Ascendas India Trust on November 1, 2024 and sell it today you would lose (2.00) from holding Ascendas India Trust or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambase Corp vs. Ascendas India Trust
Performance |
| Timeline |
| Ambase Corp |
| Ascendas India Trust |
Ambase Corp and Ascendas India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambase Corp and Ascendas India
The main advantage of trading using opposite Ambase Corp and Ascendas India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambase Corp 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.| Ambase Corp vs. Adler Group SA | Ambase Corp vs. Aztec Land Comb | Ambase Corp vs. Bridgemarq Real Estate | Ambase Corp vs. Agritek Holdings |
| Ascendas India vs. Asia Pptys | Ascendas India vs. Adler Group SA | Ascendas India vs. Aztec Land Comb | Ascendas India vs. Ambase Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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