Correlation Between Autocorp Holding and Premier Technology
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Premier Technology 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 Premier Technology 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 Premier Technology Public, you can compare the effects of market volatilities on Autocorp Holding and Premier Technology 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 Premier Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Premier Technology.
Diversification Opportunities for Autocorp Holding and Premier Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autocorp and Premier is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Premier Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Technology Public 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 Premier Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Technology Public has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Premier Technology go up and down completely randomly.
Pair Corralation between Autocorp Holding and Premier Technology
Assuming the 90 days trading horizon Autocorp Holding Public is expected to under-perform the Premier Technology. In addition to that, Autocorp Holding is 2.05 times more volatile than Premier Technology Public. It trades about -0.3 of its total potential returns per unit of risk. Premier Technology Public is currently generating about -0.14 per unit of volatility. If you would invest 970.00 in Premier Technology Public on September 3, 2024 and sell it today you would lose (25.00) from holding Premier Technology Public or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autocorp Holding Public vs. Premier Technology Public
Performance |
| Timeline |
| Autocorp Holding Public |
| Premier Technology Public |
Autocorp Holding and Premier Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Premier Technology
The main advantage of trading using opposite Autocorp Holding and Premier Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Premier Technology 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 Premier Technology will offset losses from the drop in Premier Technology'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 |
| Premier Technology vs. KCE Electronics Public | Premier Technology vs. Land and Houses | Premier Technology vs. Delta Electronics Public | Premier Technology vs. The Siam Cement |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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