Correlation Between Alphanam and Asia Commercial
Can any of the company-specific risk be diversified away by investing in both Alphanam and Asia Commercial 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 Alphanam and Asia Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Asia Commercial Bank, you can compare the effects of market volatilities on Alphanam and Asia Commercial 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 Alphanam with a short position of Asia Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Asia Commercial.
Diversification Opportunities for Alphanam and Asia Commercial
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alphanam and Asia is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Asia Commercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Commercial Bank and Alphanam 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 Alphanam ME are associated (or correlated) with Asia Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Commercial Bank has no effect on the direction of Alphanam i.e., Alphanam and Asia Commercial go up and down completely randomly.
Pair Corralation between Alphanam and Asia Commercial
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Asia Commercial. In addition to that, Alphanam is 1.57 times more volatile than Asia Commercial Bank. It trades about -0.07 of its total potential returns per unit of risk. Asia Commercial Bank is currently generating about 0.06 per unit of volatility. If you would invest 1,637,063 in Asia Commercial Bank on August 24, 2024 and sell it today you would earn a total of 857,937 from holding Asia Commercial Bank or generate 52.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.11% |
| Values | Daily Returns |
Alphanam ME vs. Asia Commercial Bank
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Asia Commercial Bank |
Alphanam and Asia Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Asia Commercial
The main advantage of trading using opposite Alphanam and Asia Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Asia Commercial 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 Asia Commercial will offset losses from the drop in Asia Commercial's long position.| Alphanam vs. Vu Dang Investment | Alphanam vs. Binhthuan Agriculture Services | Alphanam vs. Danang Education Investment | Alphanam vs. DIC Holdings Construction |
| Asia Commercial vs. Riverway Management JSC | Asia Commercial vs. Taseco Air Services | Asia Commercial vs. Post and Telecommunications | Asia Commercial vs. FPT Digital Retail |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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