Correlation Between Ashmore Asset and Cottonindo Ariesta
Can any of the company-specific risk be diversified away by investing in both Ashmore Asset and Cottonindo Ariesta 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 Cottonindo Ariesta 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 Cottonindo Ariesta Tbk, you can compare the effects of market volatilities on Ashmore Asset and Cottonindo Ariesta 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 Cottonindo Ariesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Asset and Cottonindo Ariesta.
Diversification Opportunities for Ashmore Asset and Cottonindo Ariesta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ashmore and Cottonindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Asset Management and Cottonindo Ariesta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cottonindo Ariesta 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 Cottonindo Ariesta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cottonindo Ariesta Tbk has no effect on the direction of Ashmore Asset i.e., Ashmore Asset and Cottonindo Ariesta go up and down completely randomly.
Pair Corralation between Ashmore Asset and Cottonindo Ariesta
If you would invest 6,200 in Cottonindo Ariesta Tbk on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Cottonindo Ariesta Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Ashmore Asset Management vs. Cottonindo Ariesta Tbk
Performance |
| Timeline |
| Ashmore Asset Management |
| Cottonindo Ariesta Tbk |
Ashmore Asset and Cottonindo Ariesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Asset and Cottonindo Ariesta
The main advantage of trading using opposite Ashmore Asset and Cottonindo Ariesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Asset position performs unexpectedly, Cottonindo Ariesta 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 Cottonindo Ariesta will offset losses from the drop in Cottonindo Ariesta's long position.| Ashmore Asset vs. Bank Amar Indonesia | Ashmore Asset vs. Bhakti Multi Artha | Ashmore Asset vs. Mitra Pinasthika Mustika | Ashmore Asset vs. Jakarta Int Hotels |
| Cottonindo Ariesta vs. Garudafood Putra Putri | Cottonindo Ariesta vs. PT Indofood Sukses | Cottonindo Ariesta vs. Bekasi Fajar Industrial | Cottonindo Ariesta vs. Surya Citra Media |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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