Correlation Between Amata Summit and Land
Can any of the company-specific risk be diversified away by investing in both Amata Summit and Land 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 Amata Summit and Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amata Summit Growth and Land and Houses, you can compare the effects of market volatilities on Amata Summit and Land 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 Amata Summit with a short position of Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amata Summit and Land.
Diversification Opportunities for Amata Summit and Land
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amata and Land is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Amata Summit Growth and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses and Amata Summit 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 Amata Summit Growth are associated (or correlated) with Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Amata Summit i.e., Amata Summit and Land go up and down completely randomly.
Pair Corralation between Amata Summit and Land
Assuming the 90 days trading horizon Amata Summit Growth is expected to generate 0.81 times more return on investment than Land. However, Amata Summit Growth is 1.23 times less risky than Land. It trades about 0.05 of its potential returns per unit of risk. Land and Houses is currently generating about 0.01 per unit of risk. If you would invest 654.00 in Amata Summit Growth on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Amata Summit Growth or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amata Summit Growth vs. Land and Houses
Performance |
| Timeline |
| Amata Summit Growth |
| Land and Houses |
Amata Summit and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amata Summit and Land
The main advantage of trading using opposite Amata Summit and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amata Summit position performs unexpectedly, Land 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 Land will offset losses from the drop in Land's long position.| Amata Summit vs. Land and Houses | Amata Summit vs. Major Cineplex Lifestyle | Amata Summit vs. LH Shopping Centers | Amata Summit vs. Impact Growth REIT |
| Land vs. Quality Houses Hotel | Land vs. Major Cineplex Lifestyle | Land vs. Quality Houses Property | Land vs. LH Shopping Centers |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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