Correlation Between Ashmore Asset and Galva Technologies
Can any of the company-specific risk be diversified away by investing in both Ashmore Asset and Galva Technologies 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 Ashmore Asset and Galva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Asset Management and Galva Technologies Tbk, you can compare the effects of market volatilities on Ashmore Asset and Galva Technologies 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 Ashmore Asset with a short position of Galva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Asset and Galva Technologies.
Diversification Opportunities for Ashmore Asset and Galva Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and Galva is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Asset Management and Galva Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galva Technologies Tbk and Ashmore Asset 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 Ashmore Asset Management are associated (or correlated) with Galva Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galva Technologies Tbk has no effect on the direction of Ashmore Asset i.e., Ashmore Asset and Galva Technologies go up and down completely randomly.
Pair Corralation between Ashmore Asset and Galva Technologies
Assuming the 90 days trading horizon Ashmore Asset Management is expected to under-perform the Galva Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Ashmore Asset Management is 1.6 times less risky than Galva Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Galva Technologies Tbk is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 52,939 in Galva Technologies Tbk on August 27, 2024 and sell it today you would lose (17,939) from holding Galva Technologies Tbk or give up 33.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Asset Management vs. Galva Technologies Tbk
Performance |
| Timeline |
| Ashmore Asset Management |
| Galva Technologies Tbk |
Ashmore Asset and Galva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Asset and Galva Technologies
The main advantage of trading using opposite Ashmore Asset and Galva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Asset position performs unexpectedly, Galva Technologies 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 Galva Technologies will offset losses from the drop in Galva Technologies' long position.| Ashmore Asset vs. Bank Amar Indonesia | Ashmore Asset vs. Bhakti Multi Artha | Ashmore Asset vs. Mahaka Radio Integra | Ashmore Asset vs. Ateliers Mecaniques DIndonesie |
| Galva Technologies vs. Multipolar Technology Tbk | Galva Technologies vs. Nusantara Voucher Distribution | Galva Technologies vs. Hensel Davest Indonesia | Galva Technologies vs. Anabatic Technologies Tbk |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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