Correlation Between Asia Medical and Porn Prom
Can any of the company-specific risk be diversified away by investing in both Asia Medical and Porn Prom 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 Porn Prom 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 Porn Prom Metal, you can compare the effects of market volatilities on Asia Medical and Porn Prom 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 Porn Prom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and Porn Prom.
Diversification Opportunities for Asia Medical and Porn Prom
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Porn is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and Porn Prom Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porn Prom Metal 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 Porn Prom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porn Prom Metal has no effect on the direction of Asia Medical i.e., Asia Medical and Porn Prom go up and down completely randomly.
Pair Corralation between Asia Medical and Porn Prom
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to under-perform the Porn Prom. But the stock apears to be less risky and, when comparing its historical volatility, Asia Medical Agricultural is 1.27 times less risky than Porn Prom. The stock trades about -0.04 of its potential returns per unit of risk. The Porn Prom Metal is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Porn Prom Metal on September 2, 2024 and sell it today you would lose (52.00) from holding Porn Prom Metal or give up 24.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. Porn Prom Metal
Performance |
| Timeline |
| Asia Medical Agricultural |
| Porn Prom Metal |
Asia Medical and Porn Prom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and Porn Prom
The main advantage of trading using opposite Asia Medical and Porn Prom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, Porn Prom 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 Porn Prom will offset losses from the drop in Porn Prom'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 |
| Porn Prom vs. Project Planning Service | Porn Prom vs. Panjawattana Plastic Public | Porn Prom vs. Pico Public | Porn Prom vs. Prodigy 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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