Correlation Between AIM Commercial and Amata Summit
Can any of the company-specific risk be diversified away by investing in both AIM Commercial and Amata Summit 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 AIM Commercial and Amata Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM Commercial Growth and Amata Summit Growth, you can compare the effects of market volatilities on AIM Commercial and Amata Summit 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 AIM Commercial with a short position of Amata Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Commercial and Amata Summit.
Diversification Opportunities for AIM Commercial and Amata Summit
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIM and Amata is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding AIM Commercial Growth and Amata Summit Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Summit Growth and AIM Commercial 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 AIM Commercial Growth are associated (or correlated) with Amata Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Summit Growth has no effect on the direction of AIM Commercial i.e., AIM Commercial and Amata Summit go up and down completely randomly.
Pair Corralation between AIM Commercial and Amata Summit
Assuming the 90 days trading horizon AIM Commercial Growth is expected to under-perform the Amata Summit. In addition to that, AIM Commercial is 1.33 times more volatile than Amata Summit Growth. It trades about -0.22 of its total potential returns per unit of risk. Amata Summit Growth is currently generating about 0.18 per unit of volatility. If you would invest 644.00 in Amata Summit Growth on September 5, 2024 and sell it today you would earn a total of 21.00 from holding Amata Summit Growth or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM Commercial Growth vs. Amata Summit Growth
Performance |
| Timeline |
| AIM Commercial Growth |
| Amata Summit Growth |
AIM Commercial and Amata Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM Commercial and Amata Summit
The main advantage of trading using opposite AIM Commercial and Amata Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM Commercial position performs unexpectedly, Amata Summit 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 Amata Summit will offset losses from the drop in Amata Summit's long position.| AIM Commercial vs. AIM Industrial Growth | AIM Commercial vs. Amata Summit Growth | AIM Commercial vs. Quality Houses Property | AIM Commercial vs. Ally Leasehold Real |
| Amata Summit vs. WHA Premium Growth | Amata Summit vs. AIM Industrial Growth | Amata Summit vs. Bangkok Commercial Property | Amata Summit vs. Quality Houses Property |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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