Correlation Between Alphanam and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both Alphanam and Atesco Industrial 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 Atesco Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Atesco Industrial Cartering, you can compare the effects of market volatilities on Alphanam and Atesco Industrial 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 Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Atesco Industrial.
Diversification Opportunities for Alphanam and Atesco Industrial
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alphanam and Atesco is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial 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 Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of Alphanam i.e., Alphanam and Atesco Industrial go up and down completely randomly.
Pair Corralation between Alphanam and Atesco Industrial
Assuming the 90 days trading horizon Alphanam ME is expected to generate 0.86 times more return on investment than Atesco Industrial. However, Alphanam ME is 1.17 times less risky than Atesco Industrial. It trades about -0.01 of its potential returns per unit of risk. Atesco Industrial Cartering is currently generating about -0.3 per unit of risk. If you would invest 510,000 in Alphanam ME on August 29, 2024 and sell it today you would lose (10,000) from holding Alphanam ME or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.0% |
| Values | Daily Returns |
Alphanam ME vs. Atesco Industrial Cartering
Performance |
| Timeline |
| Alphanam ME |
| Atesco Industrial |
Alphanam and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Atesco Industrial
The main advantage of trading using opposite Alphanam and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
| Atesco Industrial vs. Idico JSC | Atesco Industrial vs. Alphanam ME | Atesco Industrial vs. Hochiminh City Metal | Atesco Industrial vs. Danang Education Investment |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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