Correlation Between Autocorp Holding and Asian Sea
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Asian Sea 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 Asian Sea 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 Asian Sea, you can compare the effects of market volatilities on Autocorp Holding and Asian Sea 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 Asian Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Asian Sea.
Diversification Opportunities for Autocorp Holding and Asian Sea
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autocorp and Asian is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Asian Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Sea 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 Asian Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Sea has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Asian Sea go up and down completely randomly.
Pair Corralation between Autocorp Holding and Asian Sea
Assuming the 90 days trading horizon Autocorp Holding Public is expected to under-perform the Asian Sea. In addition to that, Autocorp Holding is 1.44 times more volatile than Asian Sea. It trades about -0.28 of its total potential returns per unit of risk. Asian Sea is currently generating about -0.22 per unit of volatility. If you would invest 925.00 in Asian Sea on August 24, 2024 and sell it today you would lose (55.00) from holding Asian Sea or give up 5.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autocorp Holding Public vs. Asian Sea
Performance |
| Timeline |
| Autocorp Holding Public |
| Asian Sea |
Autocorp Holding and Asian Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Asian Sea
The main advantage of trading using opposite Autocorp Holding and Asian Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Asian Sea 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 Asian Sea will offset losses from the drop in Asian Sea's long position.| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering Public |
| Asian Sea vs. GFPT Public | Asian Sea vs. Carabao Group Public | Asian Sea vs. Thai Union Group | Asian Sea vs. Agripure Holdings 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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