Correlation Between Arinsiri Land and Asset Five
Can any of the company-specific risk be diversified away by investing in both Arinsiri Land and Asset Five 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 Arinsiri Land and Asset Five into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arinsiri Land Public and Asset Five Group, you can compare the effects of market volatilities on Arinsiri Land and Asset Five 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 Arinsiri Land with a short position of Asset Five. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arinsiri Land and Asset Five.
Diversification Opportunities for Arinsiri Land and Asset Five
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Arinsiri and Asset is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Arinsiri Land Public and Asset Five Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asset Five Group and Arinsiri Land 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 Arinsiri Land Public are associated (or correlated) with Asset Five. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asset Five Group has no effect on the direction of Arinsiri Land i.e., Arinsiri Land and Asset Five go up and down completely randomly.
Pair Corralation between Arinsiri Land and Asset Five
Assuming the 90 days trading horizon Arinsiri Land is expected to generate 1.12 times less return on investment than Asset Five. In addition to that, Arinsiri Land is 1.01 times more volatile than Asset Five Group. It trades about 0.04 of its total potential returns per unit of risk. Asset Five Group is currently generating about 0.04 per unit of volatility. If you would invest 424.00 in Asset Five Group on September 3, 2024 and sell it today you would lose (152.00) from holding Asset Five Group or give up 35.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arinsiri Land Public vs. Asset Five Group
Performance |
| Timeline |
| Arinsiri Land Public |
| Asset Five Group |
Arinsiri Land and Asset Five Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arinsiri Land and Asset Five
The main advantage of trading using opposite Arinsiri Land and Asset Five positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arinsiri Land position performs unexpectedly, Asset Five 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 Five will offset losses from the drop in Asset Five's long position.| Arinsiri Land vs. ARIP Public | Arinsiri Land vs. ATP 30 Public | Arinsiri Land vs. G Capital Public | Arinsiri Land vs. E for L |
| Asset Five vs. AP Public | Asset Five vs. Electricity Generating Public | Asset Five vs. Com7 PCL | Asset Five vs. Bangkok Dusit Medical |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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