Correlation Between Autocorp Holding and Yggdrazil Group
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Yggdrazil Group 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 Yggdrazil Group 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 Yggdrazil Group Public, you can compare the effects of market volatilities on Autocorp Holding and Yggdrazil Group 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 Yggdrazil Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Yggdrazil Group.
Diversification Opportunities for Autocorp Holding and Yggdrazil Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Autocorp and Yggdrazil is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Yggdrazil Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yggdrazil Group 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 Yggdrazil Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yggdrazil Group Public has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Yggdrazil Group go up and down completely randomly.
Pair Corralation between Autocorp Holding and Yggdrazil Group
Assuming the 90 days trading horizon Autocorp Holding Public is expected to generate 0.37 times more return on investment than Yggdrazil Group. However, Autocorp Holding Public is 2.71 times less risky than Yggdrazil Group. It trades about -0.25 of its potential returns per unit of risk. Yggdrazil Group Public is currently generating about -0.21 per unit of risk. If you would invest 99.00 in Autocorp Holding Public on September 1, 2024 and sell it today you would lose (10.00) from holding Autocorp Holding Public or give up 10.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autocorp Holding Public vs. Yggdrazil Group Public
Performance |
| Timeline |
| Autocorp Holding Public |
| Yggdrazil Group Public |
Autocorp Holding and Yggdrazil Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Yggdrazil Group
The main advantage of trading using opposite Autocorp Holding and Yggdrazil Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Yggdrazil Group 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 Yggdrazil Group will offset losses from the drop in Yggdrazil Group'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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