Correlation Between Ascendas India and Brightspire Capital
Can any of the company-specific risk be diversified away by investing in both Ascendas India and Brightspire Capital 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 Ascendas India and Brightspire Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendas India Trust and Brightspire Capital, you can compare the effects of market volatilities on Ascendas India and Brightspire Capital 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 Ascendas India with a short position of Brightspire Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas India and Brightspire Capital.
Diversification Opportunities for Ascendas India and Brightspire Capital
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ascendas and Brightspire is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas India Trust and Brightspire Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightspire Capital and Ascendas India 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 Ascendas India Trust are associated (or correlated) with Brightspire Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightspire Capital has no effect on the direction of Ascendas India i.e., Ascendas India and Brightspire Capital go up and down completely randomly.
Pair Corralation between Ascendas India and Brightspire Capital
Assuming the 90 days horizon Ascendas India is expected to generate 2.57 times less return on investment than Brightspire Capital. But when comparing it to its historical volatility, Ascendas India Trust is 1.28 times less risky than Brightspire Capital. It trades about 0.03 of its potential returns per unit of risk. Brightspire Capital is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 560.00 in Brightspire Capital on September 14, 2024 and sell it today you would earn a total of 74.00 from holding Brightspire Capital or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendas India Trust vs. Brightspire Capital
Performance |
| Timeline |
| Ascendas India Trust |
| Brightspire Capital |
Ascendas India and Brightspire Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendas India and Brightspire Capital
The main advantage of trading using opposite Ascendas India and Brightspire Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas India position performs unexpectedly, Brightspire Capital 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 Brightspire Capital will offset losses from the drop in Brightspire Capital's long position.| Ascendas India vs. Asia Pptys | Ascendas India vs. Adler Group SA | Ascendas India vs. Aztec Land Comb | Ascendas India vs. Ambase Corp |
| Brightspire Capital vs. Ascendas India Trust | Brightspire Capital vs. Asia Pptys | Brightspire Capital vs. Adler Group SA | Brightspire Capital vs. Aztec Land Comb |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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