Correlation Between Asia Medical and RPCG Public
Can any of the company-specific risk be diversified away by investing in both Asia Medical and RPCG Public 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 RPCG Public 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 RPCG Public, you can compare the effects of market volatilities on Asia Medical and RPCG Public 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 RPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and RPCG Public.
Diversification Opportunities for Asia Medical and RPCG Public
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and RPCG is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and RPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPCG 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 RPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPCG Public has no effect on the direction of Asia Medical i.e., Asia Medical and RPCG Public go up and down completely randomly.
Pair Corralation between Asia Medical and RPCG Public
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to under-perform the RPCG Public. But the stock apears to be less risky and, when comparing its historical volatility, Asia Medical Agricultural is 19.1 times less risky than RPCG Public. The stock trades about -0.05 of its potential returns per unit of risk. The RPCG Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 88.00 in RPCG Public on September 3, 2024 and sell it today you would lose (43.00) from holding RPCG Public or give up 48.86% 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. RPCG Public
Performance |
| Timeline |
| Asia Medical Agricultural |
| RPCG Public |
Asia Medical and RPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and RPCG Public
The main advantage of trading using opposite Asia Medical and RPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, RPCG Public 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 RPCG Public will offset losses from the drop in RPCG Public'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 |
| RPCG Public vs. Interlink Communication Public | RPCG Public vs. Asia Medical Agricultural | RPCG Public vs. Syntec Construction Public | RPCG Public vs. Bualuang Office Leasehold |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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