Correlation Between Alphanam and ASG Corp
Can any of the company-specific risk be diversified away by investing in both Alphanam and ASG Corp 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 ASG Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and ASG Corp, you can compare the effects of market volatilities on Alphanam and ASG Corp 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 ASG Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and ASG Corp.
Diversification Opportunities for Alphanam and ASG Corp
Poor diversification
The 3 months correlation between Alphanam and ASG is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and ASG Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASG Corp 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 ASG Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASG Corp has no effect on the direction of Alphanam i.e., Alphanam and ASG Corp go up and down completely randomly.
Pair Corralation between Alphanam and ASG Corp
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the ASG Corp. In addition to that, Alphanam is 1.42 times more volatile than ASG Corp. It trades about -0.08 of its total potential returns per unit of risk. ASG Corp is currently generating about -0.02 per unit of volatility. If you would invest 2,410,000 in ASG Corp on August 30, 2024 and sell it today you would lose (535,000) from holding ASG Corp or give up 22.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.82% |
| Values | Daily Returns |
Alphanam ME vs. ASG Corp
Performance |
| Timeline |
| Alphanam ME |
| ASG Corp |
Alphanam and ASG Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and ASG Corp
The main advantage of trading using opposite Alphanam and ASG Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, ASG Corp 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 ASG Corp will offset losses from the drop in ASG Corp's long position.| Alphanam vs. Vu Dang Investment | Alphanam vs. BIDV Insurance Corp | Alphanam vs. Vien Dong Investment | Alphanam vs. TDG Global Investment |
| ASG Corp vs. Development Investment Construction | ASG Corp vs. Transport and Industry | ASG Corp vs. Bao Ngoc Investment | ASG Corp vs. Taseco Air Services |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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