Correlation Between Asia Fiber and Amanah Leasing
Can any of the company-specific risk be diversified away by investing in both Asia Fiber and Amanah Leasing 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 Asia Fiber and Amanah Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Fiber Public and Amanah Leasing Public, you can compare the effects of market volatilities on Asia Fiber and Amanah Leasing 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 Asia Fiber with a short position of Amanah Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Fiber and Amanah Leasing.
Diversification Opportunities for Asia Fiber and Amanah Leasing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asia and Amanah is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Asia Fiber Public and Amanah Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanah Leasing Public and Asia Fiber 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 Asia Fiber Public are associated (or correlated) with Amanah Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanah Leasing Public has no effect on the direction of Asia Fiber i.e., Asia Fiber and Amanah Leasing go up and down completely randomly.
Pair Corralation between Asia Fiber and Amanah Leasing
Assuming the 90 days trading horizon Asia Fiber Public is expected to generate 0.49 times more return on investment than Amanah Leasing. However, Asia Fiber Public is 2.05 times less risky than Amanah Leasing. It trades about -0.14 of its potential returns per unit of risk. Amanah Leasing Public is currently generating about -0.28 per unit of risk. If you would invest 510.00 in Asia Fiber Public on August 28, 2024 and sell it today you would lose (36.00) from holding Asia Fiber Public or give up 7.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Fiber Public vs. Amanah Leasing Public
Performance |
| Timeline |
| Asia Fiber Public |
| Amanah Leasing Public |
Asia Fiber and Amanah Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Fiber and Amanah Leasing
The main advantage of trading using opposite Asia Fiber and Amanah Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Fiber position performs unexpectedly, Amanah Leasing 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 Amanah Leasing will offset losses from the drop in Amanah Leasing's long position.| Asia Fiber vs. SCB X Public | Asia Fiber vs. Kasikornbank Public | Asia Fiber vs. PTT Public | Asia Fiber vs. Kasikornbank Public |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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