Correlation Between Ama Marine and Smart Concrete
Can any of the company-specific risk be diversified away by investing in both Ama Marine and Smart Concrete 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 Smart Concrete 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 Smart Concrete Public, you can compare the effects of market volatilities on Ama Marine and Smart Concrete 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 Smart Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ama Marine and Smart Concrete.
Diversification Opportunities for Ama Marine and Smart Concrete
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ama and Smart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ama Marine Public and Smart Concrete Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Concrete Public 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 Smart Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Concrete Public has no effect on the direction of Ama Marine i.e., Ama Marine and Smart Concrete go up and down completely randomly.
Pair Corralation between Ama Marine and Smart Concrete
If you would invest 393.00 in Ama Marine Public on September 4, 2024 and sell it today you would earn a total of 23.00 from holding Ama Marine Public or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ama Marine Public vs. Smart Concrete Public
Performance |
| Timeline |
| Ama Marine Public |
| Smart Concrete Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ama Marine and Smart Concrete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ama Marine and Smart Concrete
The main advantage of trading using opposite Ama Marine and Smart Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ama Marine position performs unexpectedly, Smart Concrete 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 Smart Concrete will offset losses from the drop in Smart Concrete's long position.| Ama Marine vs. Namyong Terminal PCL | Ama Marine vs. Prima Marine Public | Ama Marine vs. Precious Shipping Public | Ama Marine vs. Vibhavadi Medical Center |
| Smart Concrete vs. Salee Industry Public | Smart Concrete vs. Sea Oil Public | Smart Concrete vs. Rayong Wire Industries | Smart Concrete vs. Project Planning Service |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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