Correlation Between Autocorp Holding and SPCG Public
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and SPCG Public 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 SPCG Public 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 SPCG Public, you can compare the effects of market volatilities on Autocorp Holding and SPCG Public 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 SPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and SPCG Public.
Diversification Opportunities for Autocorp Holding and SPCG Public
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autocorp and SPCG is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and SPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPCG 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 SPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPCG Public has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and SPCG Public go up and down completely randomly.
Pair Corralation between Autocorp Holding and SPCG Public
Assuming the 90 days trading horizon Autocorp Holding Public is expected to under-perform the SPCG Public. In addition to that, Autocorp Holding is 1.14 times more volatile than SPCG Public. It trades about -0.26 of its total potential returns per unit of risk. SPCG Public is currently generating about -0.08 per unit of volatility. If you would invest 875.00 in SPCG Public on September 4, 2024 and sell it today you would lose (25.00) from holding SPCG Public or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Autocorp Holding Public vs. SPCG Public
Performance |
| Timeline |
| Autocorp Holding Public |
| SPCG Public |
Autocorp Holding and SPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and SPCG Public
The main advantage of trading using opposite Autocorp Holding and SPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, SPCG Public 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 SPCG Public will offset losses from the drop in SPCG Public'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 |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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