Correlation Between Asia Medical and Information
Can any of the company-specific risk be diversified away by investing in both Asia Medical and Information 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 Information 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 Information and Communication, you can compare the effects of market volatilities on Asia Medical and Information 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 Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and Information.
Diversification Opportunities for Asia Medical and Information
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Information is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and Information and Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information and Comm 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 Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information and Comm has no effect on the direction of Asia Medical i.e., Asia Medical and Information go up and down completely randomly.
Pair Corralation between Asia Medical and Information
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to generate 1.38 times more return on investment than Information. However, Asia Medical is 1.38 times more volatile than Information and Communication. It trades about 0.1 of its potential returns per unit of risk. Information and Communication is currently generating about -0.07 per unit of risk. If you would invest 134.00 in Asia Medical Agricultural on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Asia Medical Agricultural or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. Information and Communication
Performance |
| Timeline |
| Asia Medical Agricultural |
| Information and Comm |
Asia Medical and Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and Information
The main advantage of trading using opposite Asia Medical and Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, Information 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 Information will offset losses from the drop in Information's long position.| Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public | Asia Medical vs. The Erawan Group | Asia Medical vs. Autocorp Holding Public |
| Information vs. Hana Microelectronics Public | Information vs. Ekachai Medical Care | Information vs. Megachem Public | Information vs. Diamond Building Products |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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