Correlation Between Amanah Leasing and Asia Plus
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and Asia Plus 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 Amanah Leasing and Asia Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amanah Leasing Public and Asia Plus Group, you can compare the effects of market volatilities on Amanah Leasing and Asia Plus 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 Amanah Leasing with a short position of Asia Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Asia Plus.
Diversification Opportunities for Amanah Leasing and Asia Plus
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amanah and Asia is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and Asia Plus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Plus Group and Amanah Leasing 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 Amanah Leasing Public are associated (or correlated) with Asia Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Plus Group has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and Asia Plus go up and down completely randomly.
Pair Corralation between Amanah Leasing and Asia Plus
Assuming the 90 days trading horizon Amanah Leasing Public is expected to under-perform the Asia Plus. In addition to that, Amanah Leasing is 2.56 times more volatile than Asia Plus Group. It trades about -0.49 of its total potential returns per unit of risk. Asia Plus Group is currently generating about -0.16 per unit of volatility. If you would invest 252.00 in Asia Plus Group on August 30, 2024 and sell it today you would lose (8.00) from holding Asia Plus Group or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amanah Leasing Public vs. Asia Plus Group
Performance |
| Timeline |
| Amanah Leasing Public |
| Asia Plus Group |
Amanah Leasing and Asia Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Asia Plus
The main advantage of trading using opposite Amanah Leasing and Asia Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, Asia Plus 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 Asia Plus will offset losses from the drop in Asia Plus' long position.| Amanah Leasing vs. Karmarts Public | Amanah Leasing vs. Kang Yong Electric | Amanah Leasing vs. SCG PACKAGING PCL NVDR | Amanah Leasing vs. CK Power Public |
| Asia Plus vs. Karmarts Public | Asia Plus vs. Kang Yong Electric | Asia Plus vs. SCG PACKAGING PCL NVDR | Asia Plus vs. CK Power 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| 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 | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |