Correlation Between AIRA Factoring and Multibax Public
Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Multibax Public 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 AIRA Factoring and Multibax Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Factoring Public and Multibax Public, you can compare the effects of market volatilities on AIRA Factoring and Multibax Public 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 AIRA Factoring with a short position of Multibax Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Multibax Public.
Diversification Opportunities for AIRA Factoring and Multibax Public
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AIRA and Multibax is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Multibax Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multibax Public and AIRA Factoring 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 AIRA Factoring Public are associated (or correlated) with Multibax Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multibax Public has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Multibax Public go up and down completely randomly.
Pair Corralation between AIRA Factoring and Multibax Public
Assuming the 90 days horizon AIRA Factoring Public is expected to generate 0.83 times more return on investment than Multibax Public. However, AIRA Factoring Public is 1.2 times less risky than Multibax Public. It trades about 0.17 of its potential returns per unit of risk. Multibax Public is currently generating about -0.4 per unit of risk. If you would invest 59.00 in AIRA Factoring Public on September 13, 2024 and sell it today you would earn a total of 6.00 from holding AIRA Factoring Public or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRA Factoring Public vs. Multibax Public
Performance |
| Timeline |
| AIRA Factoring Public |
| Multibax Public |
AIRA Factoring and Multibax Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Factoring and Multibax Public
The main advantage of trading using opposite AIRA Factoring and Multibax Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Multibax Public 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 Multibax Public will offset losses from the drop in Multibax Public's long position.| AIRA Factoring vs. Srisawad Power 1979 | AIRA Factoring vs. Muangthai Capital Public | AIRA Factoring vs. Micro Leasing Public | AIRA Factoring vs. Krungthai Card PCL |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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