Correlation Between Ananda Development and Asset World
Can any of the company-specific risk be diversified away by investing in both Ananda Development and Asset World 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 Ananda Development and Asset World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ananda Development Public and Asset World Corp, you can compare the effects of market volatilities on Ananda Development and Asset World 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 Ananda Development with a short position of Asset World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ananda Development and Asset World.
Diversification Opportunities for Ananda Development and Asset World
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ananda and Asset is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ananda Development Public and Asset World Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asset World Corp and Ananda Development 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 Ananda Development Public are associated (or correlated) with Asset World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asset World Corp has no effect on the direction of Ananda Development i.e., Ananda Development and Asset World go up and down completely randomly.
Pair Corralation between Ananda Development and Asset World
Assuming the 90 days trading horizon Ananda Development Public is expected to under-perform the Asset World. In addition to that, Ananda Development is 2.33 times more volatile than Asset World Corp. It trades about -0.22 of its total potential returns per unit of risk. Asset World Corp is currently generating about 0.03 per unit of volatility. If you would invest 308.00 in Asset World Corp on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Asset World Corp or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ananda Development Public vs. Asset World Corp
Performance |
| Timeline |
| Ananda Development Public |
| Asset World Corp |
Ananda Development and Asset World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ananda Development and Asset World
The main advantage of trading using opposite Ananda Development and Asset World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ananda Development position performs unexpectedly, Asset World 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 Asset World will offset losses from the drop in Asset World's long position.| Ananda Development vs. AP Public | Ananda Development vs. Siri Prime Office | Ananda Development vs. Quality Houses Public | Ananda Development vs. LPN Development Public |
| Asset World vs. Central Retail | Asset World vs. Gulf Energy Development | Asset World vs. BTS Group Holdings | Asset World vs. Bangkok Expressway and |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |