Correlation Between AIM Industrial and Indara Insurance
Can any of the company-specific risk be diversified away by investing in both AIM Industrial and Indara Insurance 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 Industrial and Indara Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM Industrial Growth and Indara Insurance Public, you can compare the effects of market volatilities on AIM Industrial and Indara Insurance 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 Industrial with a short position of Indara Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Industrial and Indara Insurance.
Diversification Opportunities for AIM Industrial and Indara Insurance
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between AIM and Indara is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AIM Industrial Growth and Indara Insurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indara Insurance Public and AIM Industrial 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 Industrial Growth are associated (or correlated) with Indara Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indara Insurance Public has no effect on the direction of AIM Industrial i.e., AIM Industrial and Indara Insurance go up and down completely randomly.
Pair Corralation between AIM Industrial and Indara Insurance
Assuming the 90 days trading horizon AIM Industrial is expected to generate 147.63 times less return on investment than Indara Insurance. But when comparing it to its historical volatility, AIM Industrial Growth is 65.47 times less risky than Indara Insurance. It trades about 0.02 of its potential returns per unit of risk. Indara Insurance Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,500 in Indara Insurance Public on September 14, 2024 and sell it today you would lose (3,600) from holding Indara Insurance Public or give up 31.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM Industrial Growth vs. Indara Insurance Public
Performance |
| Timeline |
| AIM Industrial Growth |
| Indara Insurance Public |
AIM Industrial and Indara Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM Industrial and Indara Insurance
The main advantage of trading using opposite AIM Industrial and Indara Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM Industrial position performs unexpectedly, Indara Insurance 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 Indara Insurance will offset losses from the drop in Indara Insurance's long position.| AIM Industrial vs. Amata Summit Growth | AIM Industrial vs. WHA Premium Growth | AIM Industrial vs. Digital Telecommunications Infrastructure | AIM Industrial vs. Quality Houses Property |
| Indara Insurance vs. KGI Securities Public | Indara Insurance vs. Lalin Property Public | Indara Insurance vs. Hwa Fong Rubber | Indara Insurance vs. MCS Steel 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |