Correlation Between Agripure Holdings and Asia Precision
Can any of the company-specific risk be diversified away by investing in both Agripure Holdings and Asia Precision 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 Agripure Holdings and Asia Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agripure Holdings Public and Asia Precision Public, you can compare the effects of market volatilities on Agripure Holdings and Asia Precision 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 Agripure Holdings with a short position of Asia Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agripure Holdings and Asia Precision.
Diversification Opportunities for Agripure Holdings and Asia Precision
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agripure and Asia is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Agripure Holdings Public and Asia Precision Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Precision Public and Agripure Holdings 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 Agripure Holdings Public are associated (or correlated) with Asia Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Precision Public has no effect on the direction of Agripure Holdings i.e., Agripure Holdings and Asia Precision go up and down completely randomly.
Pair Corralation between Agripure Holdings and Asia Precision
Assuming the 90 days trading horizon Agripure Holdings Public is expected to under-perform the Asia Precision. But the stock apears to be less risky and, when comparing its historical volatility, Agripure Holdings Public is 2.58 times less risky than Asia Precision. The stock trades about -0.2 of its potential returns per unit of risk. The Asia Precision Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Asia Precision Public on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Asia Precision Public or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agripure Holdings Public vs. Asia Precision Public
Performance |
| Timeline |
| Agripure Holdings Public |
| Asia Precision Public |
Agripure Holdings and Asia Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agripure Holdings and Asia Precision
The main advantage of trading using opposite Agripure Holdings and Asia Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agripure Holdings position performs unexpectedly, Asia Precision 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 Asia Precision will offset losses from the drop in Asia Precision's long position.The idea behind Agripure Holdings Public and Asia Precision Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Asia Precision vs. Tata Steel Public | Asia Precision vs. Thaifoods Group Public | Asia Precision vs. TMT Steel Public | Asia Precision vs. The Erawan Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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