Correlation Between Asahimas Flat and Champion Pacific
Can any of the company-specific risk be diversified away by investing in both Asahimas Flat and Champion Pacific 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 Asahimas Flat and Champion Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asahimas Flat Glass and Champion Pacific Indonesia, you can compare the effects of market volatilities on Asahimas Flat and Champion Pacific 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 Asahimas Flat with a short position of Champion Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Champion Pacific.
Diversification Opportunities for Asahimas Flat and Champion Pacific
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asahimas and Champion is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass and Champion Pacific Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Pacific Ind and Asahimas Flat 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 Asahimas Flat Glass are associated (or correlated) with Champion Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Pacific Ind has no effect on the direction of Asahimas Flat i.e., Asahimas Flat and Champion Pacific go up and down completely randomly.
Pair Corralation between Asahimas Flat and Champion Pacific
Assuming the 90 days trading horizon Asahimas Flat Glass is expected to under-perform the Champion Pacific. But the stock apears to be less risky and, when comparing its historical volatility, Asahimas Flat Glass is 4.72 times less risky than Champion Pacific. The stock trades about -0.29 of its potential returns per unit of risk. The Champion Pacific Indonesia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 50,000 in Champion Pacific Indonesia on September 2, 2024 and sell it today you would earn a total of 500.00 from holding Champion Pacific Indonesia or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asahimas Flat Glass vs. Champion Pacific Indonesia
Performance |
| Timeline |
| Asahimas Flat Glass |
| Champion Pacific Ind |
Asahimas Flat and Champion Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asahimas Flat and Champion Pacific
The main advantage of trading using opposite Asahimas Flat and Champion Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat position performs unexpectedly, Champion Pacific 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 Champion Pacific will offset losses from the drop in Champion Pacific's long position.| Asahimas Flat vs. Matahari Department Store | Asahimas Flat vs. Multi Medika Internasional | Asahimas Flat vs. Visi Media Asia | Asahimas Flat vs. Bayan Resources Tbk |
| Champion Pacific vs. Intanwijaya Internasional Tbk | Champion Pacific vs. Asiaplast Industries Tbk | Champion Pacific vs. Trias Sentosa Tbk | Champion Pacific vs. Lotte Chemical Titan |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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