Correlation Between Autocorp Holding and Forth Smart
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Forth Smart 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 Forth Smart 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 Forth Smart Service, you can compare the effects of market volatilities on Autocorp Holding and Forth Smart 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 Forth Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Forth Smart.
Diversification Opportunities for Autocorp Holding and Forth Smart
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autocorp and Forth is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Forth Smart Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forth Smart Service 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 Forth Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forth Smart Service has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Forth Smart go up and down completely randomly.
Pair Corralation between Autocorp Holding and Forth Smart
Assuming the 90 days trading horizon Autocorp Holding Public is expected to generate 14.87 times more return on investment than Forth Smart. However, Autocorp Holding is 14.87 times more volatile than Forth Smart Service. It trades about 0.04 of its potential returns per unit of risk. Forth Smart Service is currently generating about -0.01 per unit of risk. If you would invest 151.00 in Autocorp Holding Public on September 3, 2024 and sell it today you would lose (62.00) from holding Autocorp Holding Public or give up 41.06% 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. Forth Smart Service
Performance |
| Timeline |
| Autocorp Holding Public |
| Forth Smart Service |
Autocorp Holding and Forth Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Forth Smart
The main advantage of trading using opposite Autocorp Holding and Forth Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Forth Smart 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 Forth Smart will offset losses from the drop in Forth Smart'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 |
| Forth Smart vs. Forth Public | Forth Smart vs. Hana Microelectronics Public | Forth Smart vs. AP Public | Forth Smart vs. Home Product Center |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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