Correlation Between Asia Medical and CENTRAL RETAIL
Can any of the company-specific risk be diversified away by investing in both Asia Medical and CENTRAL RETAIL 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 Asia Medical and CENTRAL RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Medical Agricultural and CENTRAL RETAIL P, you can compare the effects of market volatilities on Asia Medical and CENTRAL RETAIL 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 Asia Medical with a short position of CENTRAL RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and CENTRAL RETAIL.
Diversification Opportunities for Asia Medical and CENTRAL RETAIL
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and CENTRAL is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and CENTRAL RETAIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL RETAIL P and Asia Medical 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 Asia Medical Agricultural are associated (or correlated) with CENTRAL RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL RETAIL P has no effect on the direction of Asia Medical i.e., Asia Medical and CENTRAL RETAIL go up and down completely randomly.
Pair Corralation between Asia Medical and CENTRAL RETAIL
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to generate 1.22 times more return on investment than CENTRAL RETAIL. However, Asia Medical is 1.22 times more volatile than CENTRAL RETAIL P. It trades about 0.03 of its potential returns per unit of risk. CENTRAL RETAIL P is currently generating about -0.21 per unit of risk. If you would invest 142.00 in Asia Medical Agricultural on September 5, 2024 and sell it today you would earn a total of 2.00 from holding Asia Medical Agricultural or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. CENTRAL RETAIL P
Performance |
| Timeline |
| Asia Medical Agricultural |
| CENTRAL RETAIL P |
Asia Medical and CENTRAL RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and CENTRAL RETAIL
The main advantage of trading using opposite Asia Medical and CENTRAL RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, CENTRAL RETAIL 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 CENTRAL RETAIL will offset losses from the drop in CENTRAL RETAIL's long position.| Asia Medical vs. Aurora Design PCL | Asia Medical vs. SCG Packaging Public | Asia Medical vs. Regional Container Lines | Asia Medical vs. Sabuy Technology Public |
| CENTRAL RETAIL vs. 2S Metal Public | CENTRAL RETAIL vs. Thai Energy Storage | CENTRAL RETAIL vs. NSL Foods Public | CENTRAL RETAIL vs. President Automobile Industries |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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