Correlation Between Aspire Mining and AiMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Aspire Mining and AiMedia Technologies 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 Aspire Mining and AiMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspire Mining and AiMedia Technologies, you can compare the effects of market volatilities on Aspire Mining and AiMedia Technologies 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 Aspire Mining with a short position of AiMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and AiMedia Technologies.
Diversification Opportunities for Aspire Mining and AiMedia Technologies
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspire and AiMedia is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies and Aspire Mining 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 Aspire Mining are associated (or correlated) with AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of Aspire Mining i.e., Aspire Mining and AiMedia Technologies go up and down completely randomly.
Pair Corralation between Aspire Mining and AiMedia Technologies
Assuming the 90 days trading horizon Aspire Mining is expected to generate 1.55 times more return on investment than AiMedia Technologies. However, Aspire Mining is 1.55 times more volatile than AiMedia Technologies. It trades about 0.07 of its potential returns per unit of risk. AiMedia Technologies is currently generating about 0.06 per unit of risk. If you would invest 7.80 in Aspire Mining on August 30, 2024 and sell it today you would earn a total of 21.20 from holding Aspire Mining or generate 271.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspire Mining vs. AiMedia Technologies
Performance |
| Timeline |
| Aspire Mining |
| AiMedia Technologies |
Aspire Mining and AiMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspire Mining and AiMedia Technologies
The main advantage of trading using opposite Aspire Mining and AiMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Mining position performs unexpectedly, AiMedia Technologies 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 AiMedia Technologies will offset losses from the drop in AiMedia Technologies' long position.| Aspire Mining vs. Oceania Healthcare | Aspire Mining vs. Black Rock Mining | Aspire Mining vs. The Environmental Group | Aspire Mining vs. Sonic Healthcare |
| AiMedia Technologies vs. Aneka Tambang Tbk | AiMedia Technologies vs. Unibail Rodamco Westfield SE | AiMedia Technologies vs. Macquarie Group | AiMedia Technologies vs. Commonwealth Bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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