Correlation Between Asia Commercial and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both Asia Commercial and Atesco Industrial 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 Asia Commercial and Atesco Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Commercial Bank and Atesco Industrial Cartering, you can compare the effects of market volatilities on Asia Commercial and Atesco Industrial 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 Asia Commercial with a short position of Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Commercial and Atesco Industrial.
Diversification Opportunities for Asia Commercial and Atesco Industrial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asia and Atesco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Asia Commercial Bank and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial and Asia Commercial 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 Asia Commercial Bank are associated (or correlated) with Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of Asia Commercial i.e., Asia Commercial and Atesco Industrial go up and down completely randomly.
Pair Corralation between Asia Commercial and Atesco Industrial
Assuming the 90 days trading horizon Asia Commercial Bank is expected to under-perform the Atesco Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Asia Commercial Bank is 3.56 times less risky than Atesco Industrial. The stock trades about -0.1 of its potential returns per unit of risk. The Atesco Industrial Cartering is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,290,000 in Atesco Industrial Cartering on September 15, 2024 and sell it today you would earn a total of 380,000 from holding Atesco Industrial Cartering or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Asia Commercial Bank vs. Atesco Industrial Cartering
Performance |
| Timeline |
| Asia Commercial Bank |
| Atesco Industrial |
Asia Commercial and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Commercial and Atesco Industrial
The main advantage of trading using opposite Asia Commercial and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Commercial position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| Asia Commercial vs. Development Investment Construction | Asia Commercial vs. Agriculture Printing and | Asia Commercial vs. Mechanics Construction and | Asia Commercial vs. Pacific Petroleum Transportation |
| Atesco Industrial vs. Song Hong Garment | Atesco Industrial vs. Alphanam ME | Atesco Industrial vs. Hochiminh City Metal | Atesco Industrial vs. Danang Education Investment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |