Correlation Between Ascendas India and Wetouch Technology
Can any of the company-specific risk be diversified away by investing in both Ascendas India and Wetouch 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 Ascendas India and Wetouch Technology 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 Wetouch Technology Common, you can compare the effects of market volatilities on Ascendas India and Wetouch 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 Ascendas India with a short position of Wetouch Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas India and Wetouch Technology.
Diversification Opportunities for Ascendas India and Wetouch Technology
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ascendas and Wetouch is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas India Trust and Wetouch Technology Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wetouch Technology Common 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 Wetouch Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wetouch Technology Common has no effect on the direction of Ascendas India i.e., Ascendas India and Wetouch Technology go up and down completely randomly.
Pair Corralation between Ascendas India and Wetouch Technology
Assuming the 90 days horizon Ascendas India Trust is expected to under-perform the Wetouch Technology. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ascendas India Trust is 3.81 times less risky than Wetouch Technology. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Wetouch Technology Common is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 157.00 in Wetouch Technology Common on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Wetouch Technology Common or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendas India Trust vs. Wetouch Technology Common
Performance |
| Timeline |
| Ascendas India Trust |
| Wetouch Technology Common |
Ascendas India and Wetouch Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendas India and Wetouch Technology
The main advantage of trading using opposite Ascendas India and Wetouch Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas India position performs unexpectedly, Wetouch 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 Wetouch Technology will offset losses from the drop in Wetouch Technology'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 |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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