Correlation Between AddTech Hub and Premier Marketing
Can any of the company-specific risk be diversified away by investing in both AddTech Hub and Premier Marketing 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 AddTech Hub and Premier Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AddTech Hub Public and Premier Marketing Public, you can compare the effects of market volatilities on AddTech Hub and Premier Marketing 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 AddTech Hub with a short position of Premier Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of AddTech Hub and Premier Marketing.
Diversification Opportunities for AddTech Hub and Premier Marketing
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between AddTech and Premier is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding AddTech Hub Public and Premier Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Marketing Public and AddTech Hub 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 AddTech Hub Public are associated (or correlated) with Premier Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Marketing Public has no effect on the direction of AddTech Hub i.e., AddTech Hub and Premier Marketing go up and down completely randomly.
Pair Corralation between AddTech Hub and Premier Marketing
Assuming the 90 days trading horizon AddTech Hub Public is expected to under-perform the Premier Marketing. In addition to that, AddTech Hub is 1.12 times more volatile than Premier Marketing Public. It trades about 0.0 of its total potential returns per unit of risk. Premier Marketing Public is currently generating about 0.08 per unit of volatility. If you would invest 786.00 in Premier Marketing Public on August 29, 2024 and sell it today you would earn a total of 129.00 from holding Premier Marketing Public or generate 16.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AddTech Hub Public vs. Premier Marketing Public
Performance |
| Timeline |
| AddTech Hub Public |
| Premier Marketing Public |
AddTech Hub and Premier Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AddTech Hub and Premier Marketing
The main advantage of trading using opposite AddTech Hub and Premier Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AddTech Hub position performs unexpectedly, Premier Marketing 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 Marketing will offset losses from the drop in Premier Marketing's long position.| AddTech Hub vs. Forth Public | AddTech Hub vs. After You Public | AddTech Hub vs. The Erawan Group | AddTech Hub vs. Airports of Thailand |
| Premier Marketing vs. Haad Thip Public | Premier Marketing vs. MK Restaurant Group | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Taokaenoi Food Marketing |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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