Correlation Between Asia Fiber and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both Asia Fiber and TISCO Financial 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 TISCO Financial 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 TISCO Financial Group, you can compare the effects of market volatilities on Asia Fiber and TISCO Financial 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 TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Fiber and TISCO Financial.
Diversification Opportunities for Asia Fiber and TISCO Financial
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asia and TISCO is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Asia Fiber Public and TISCO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TISCO Financial Group 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 TISCO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TISCO Financial Group has no effect on the direction of Asia Fiber i.e., Asia Fiber and TISCO Financial go up and down completely randomly.
Pair Corralation between Asia Fiber and TISCO Financial
Assuming the 90 days trading horizon Asia Fiber Public is expected to under-perform the TISCO Financial. In addition to that, Asia Fiber is 5.2 times more volatile than TISCO Financial Group. It trades about -0.21 of its total potential returns per unit of risk. TISCO Financial Group is currently generating about 0.05 per unit of volatility. If you would invest 9,925 in TISCO Financial Group on November 9, 2024 and sell it today you would earn a total of 50.00 from holding TISCO Financial Group or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Fiber Public vs. TISCO Financial Group
Performance |
| Timeline |
| Asia Fiber Public |
| TISCO Financial Group |
Asia Fiber and TISCO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Fiber and TISCO Financial
The main advantage of trading using opposite Asia Fiber and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Fiber position performs unexpectedly, TISCO Financial 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 TISCO Financial will offset losses from the drop in TISCO Financial's long position.| Asia Fiber vs. AJ Plast Public | Asia Fiber vs. Aikchol Hospital Public | Asia Fiber vs. Boutique Newcity Public | Asia Fiber vs. Allianz Ayudhya Capital |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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