Correlation Between Adler Group and Ascendas India
Can any of the company-specific risk be diversified away by investing in both Adler Group and Ascendas India 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 Adler Group and Ascendas India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adler Group SA and Ascendas India Trust, you can compare the effects of market volatilities on Adler Group and Ascendas India 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 Adler Group with a short position of Ascendas India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adler Group and Ascendas India.
Diversification Opportunities for Adler Group and Ascendas India
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Adler and Ascendas is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Adler Group SA and Ascendas India Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendas India Trust and Adler Group 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 Adler Group SA are associated (or correlated) with Ascendas India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendas India Trust has no effect on the direction of Adler Group i.e., Adler Group and Ascendas India go up and down completely randomly.
Pair Corralation between Adler Group and Ascendas India
If you would invest 35.00 in Adler Group SA on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Adler Group SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adler Group SA vs. Ascendas India Trust
Performance |
| Timeline |
| Adler Group SA |
| Ascendas India Trust |
Adler Group and Ascendas India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adler Group and Ascendas India
The main advantage of trading using opposite Adler Group and Ascendas India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adler Group position performs unexpectedly, Ascendas India 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 Ascendas India will offset losses from the drop in Ascendas India's long position.| Adler Group vs. Aztec Land Comb | Adler Group vs. Bridgemarq Real Estate | Adler Group vs. Ambase Corp | Adler Group vs. Agritek Holdings |
| Ascendas India vs. Asia Pptys | Ascendas India vs. Adler Group SA | Ascendas India vs. Aztec Land Comb | Ascendas India vs. Ambase Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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