Correlation Between Autocorp Holding and Moshi Moshi
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Moshi Moshi 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 Moshi Moshi 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 Moshi Moshi Retail, you can compare the effects of market volatilities on Autocorp Holding and Moshi Moshi 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 Moshi Moshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Moshi Moshi.
Diversification Opportunities for Autocorp Holding and Moshi Moshi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autocorp and Moshi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Moshi Moshi Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moshi Moshi Retail 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 Moshi Moshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moshi Moshi Retail has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Moshi Moshi go up and down completely randomly.
Pair Corralation between Autocorp Holding and Moshi Moshi
Assuming the 90 days trading horizon Autocorp Holding is expected to generate 1.12 times less return on investment than Moshi Moshi. But when comparing it to its historical volatility, Autocorp Holding Public is 1.01 times less risky than Moshi Moshi. It trades about 0.04 of its potential returns per unit of risk. Moshi Moshi Retail is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,867 in Moshi Moshi Retail on September 3, 2024 and sell it today you would earn a total of 1,808 from holding Moshi Moshi Retail or generate 63.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.55% |
| Values | Daily Returns |
Autocorp Holding Public vs. Moshi Moshi Retail
Performance |
| Timeline |
| Autocorp Holding Public |
| Moshi Moshi Retail |
Autocorp Holding and Moshi Moshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Moshi Moshi
The main advantage of trading using opposite Autocorp Holding and Moshi Moshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Moshi Moshi 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 Moshi Moshi will offset losses from the drop in Moshi Moshi'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 |
| Moshi Moshi vs. Central Retail | Moshi Moshi vs. The Erawan Group | Moshi Moshi vs. Autocorp Holding Public | Moshi Moshi vs. XSpring Capital 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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