Correlation Between AIRA Factoring and Unimit Engineering
Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Unimit Engineering 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 Unimit Engineering 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 Unimit Engineering Public, you can compare the effects of market volatilities on AIRA Factoring and Unimit Engineering 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 Unimit Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Unimit Engineering.
Diversification Opportunities for AIRA Factoring and Unimit Engineering
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIRA and Unimit is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Unimit Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimit Engineering 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 Unimit Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimit Engineering Public has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Unimit Engineering go up and down completely randomly.
Pair Corralation between AIRA Factoring and Unimit Engineering
Assuming the 90 days horizon AIRA Factoring Public is expected to under-perform the Unimit Engineering. But the stock apears to be less risky and, when comparing its historical volatility, AIRA Factoring Public is 12.82 times less risky than Unimit Engineering. The stock trades about -0.01 of its potential returns per unit of risk. The Unimit Engineering Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Unimit Engineering Public on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Unimit Engineering Public or generate 1.61% 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. Unimit Engineering Public
Performance |
| Timeline |
| AIRA Factoring Public |
| Unimit Engineering Public |
AIRA Factoring and Unimit Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Factoring and Unimit Engineering
The main advantage of trading using opposite AIRA Factoring and Unimit Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Unimit Engineering 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 Unimit Engineering will offset losses from the drop in Unimit Engineering's long position.| AIRA Factoring vs. Akkhie Prakarn Public | AIRA Factoring vs. Asia Green Energy | AIRA Factoring vs. G Capital Public | AIRA Factoring vs. ASIA Capital Group |
| Unimit Engineering vs. Union Petrochemical Public | Unimit Engineering vs. Ubis Public | Unimit Engineering vs. Unique Mining Services | Unimit Engineering vs. Eureka Design Public |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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