Correlation Between Asia Medical and Mena Transport
Can any of the company-specific risk be diversified away by investing in both Asia Medical and Mena Transport 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 Mena Transport 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 Mena Transport Public, you can compare the effects of market volatilities on Asia Medical and Mena Transport 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 Mena Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and Mena Transport.
Diversification Opportunities for Asia Medical and Mena Transport
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asia and Mena is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and Mena Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mena Transport Public 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 Mena Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mena Transport Public has no effect on the direction of Asia Medical i.e., Asia Medical and Mena Transport go up and down completely randomly.
Pair Corralation between Asia Medical and Mena Transport
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to generate 1.26 times more return on investment than Mena Transport. However, Asia Medical is 1.26 times more volatile than Mena Transport Public. It trades about 0.08 of its potential returns per unit of risk. Mena Transport Public is currently generating about 0.04 per unit of risk. If you would invest 136.00 in Asia Medical Agricultural on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Asia Medical Agricultural or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. Mena Transport Public
Performance |
| Timeline |
| Asia Medical Agricultural |
| Mena Transport Public |
Asia Medical and Mena Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and Mena Transport
The main advantage of trading using opposite Asia Medical and Mena Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, Mena Transport 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 Mena Transport will offset losses from the drop in Mena Transport's long position.| Asia Medical vs. Asian Alliance International | Asia Medical vs. International Network System | Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public |
| Mena Transport vs. Namyong Terminal PCL | Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |