Correlation Between Ama Marine and Grande Asset
Can any of the company-specific risk be diversified away by investing in both Ama Marine and Grande Asset 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 Ama Marine and Grande Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ama Marine Public and Grande Asset Hotels, you can compare the effects of market volatilities on Ama Marine and Grande Asset 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 Ama Marine with a short position of Grande Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ama Marine and Grande Asset.
Diversification Opportunities for Ama Marine and Grande Asset
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ama and Grande is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ama Marine Public and Grande Asset Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Asset Hotels and Ama Marine 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 Ama Marine Public are associated (or correlated) with Grande Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Asset Hotels has no effect on the direction of Ama Marine i.e., Ama Marine and Grande Asset go up and down completely randomly.
Pair Corralation between Ama Marine and Grande Asset
Assuming the 90 days trading horizon Ama Marine Public is expected to generate 0.13 times more return on investment than Grande Asset. However, Ama Marine Public is 7.84 times less risky than Grande Asset. It trades about -0.19 of its potential returns per unit of risk. Grande Asset Hotels is currently generating about -0.03 per unit of risk. If you would invest 434.00 in Ama Marine Public on September 1, 2024 and sell it today you would lose (18.00) from holding Ama Marine Public or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ama Marine Public vs. Grande Asset Hotels
Performance |
| Timeline |
| Ama Marine Public |
| Grande Asset Hotels |
Ama Marine and Grande Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ama Marine and Grande Asset
The main advantage of trading using opposite Ama Marine and Grande Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ama Marine position performs unexpectedly, Grande Asset 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 Grande Asset will offset losses from the drop in Grande Asset's long position.| Ama Marine vs. Arrow Syndicate Public | Ama Marine vs. After You Public | Ama Marine vs. Union Auction Public | Ama Marine vs. Akkhie Prakarn Public |
| Grande Asset vs. TRC Construction Public | Grande Asset vs. Bangkok Expressway and | Grande Asset vs. Lohakit Metal Public | Grande Asset vs. Gunkul Engineering 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |