Correlation Between Autocorp Holding and Asia Medical
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Asia Medical 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 Autocorp Holding and Asia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autocorp Holding Public and Asia Medical Agricultural, you can compare the effects of market volatilities on Autocorp Holding and Asia Medical 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 Autocorp Holding with a short position of Asia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Asia Medical.
Diversification Opportunities for Autocorp Holding and Asia Medical
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autocorp and Asia is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Asia Medical Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Medical Agricultural and Autocorp Holding 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 Autocorp Holding Public are associated (or correlated) with Asia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Medical Agricultural has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Asia Medical go up and down completely randomly.
Pair Corralation between Autocorp Holding and Asia Medical
Assuming the 90 days trading horizon Autocorp Holding Public is expected to under-perform the Asia Medical. In addition to that, Autocorp Holding is 1.44 times more volatile than Asia Medical Agricultural. It trades about -0.12 of its total potential returns per unit of risk. Asia Medical Agricultural is currently generating about -0.13 per unit of volatility. If you would invest 128.00 in Asia Medical Agricultural on November 30, 2024 and sell it today you would lose (14.00) from holding Asia Medical Agricultural or give up 10.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autocorp Holding Public vs. Asia Medical Agricultural
Performance |
| Timeline |
| Autocorp Holding Public |
| Asia Medical Agricultural |
Autocorp Holding and Asia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Asia Medical
The main advantage of trading using opposite Autocorp Holding and Asia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Asia Medical 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 Asia Medical will offset losses from the drop in Asia Medical's long position.| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. AAPICO Hitech Public |
| Asia Medical vs. Asian Alliance International | Asia Medical vs. International Network System | Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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