Correlation Between ARIP Public and G Capital
Can any of the company-specific risk be diversified away by investing in both ARIP Public and G Capital 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 ARIP Public and G Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARIP Public and G Capital Public, you can compare the effects of market volatilities on ARIP Public and G Capital 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 ARIP Public with a short position of G Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARIP Public and G Capital.
Diversification Opportunities for ARIP Public and G Capital
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ARIP and GCAP is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ARIP Public and G Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Capital Public and ARIP Public 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 ARIP Public are associated (or correlated) with G Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Capital Public has no effect on the direction of ARIP Public i.e., ARIP Public and G Capital go up and down completely randomly.
Pair Corralation between ARIP Public and G Capital
Assuming the 90 days trading horizon ARIP Public is expected to generate 0.48 times more return on investment than G Capital. However, ARIP Public is 2.08 times less risky than G Capital. It trades about -0.14 of its potential returns per unit of risk. G Capital Public is currently generating about -0.22 per unit of risk. If you would invest 64.00 in ARIP Public on September 3, 2024 and sell it today you would lose (5.00) from holding ARIP Public or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARIP Public vs. G Capital Public
Performance |
| Timeline |
| ARIP Public |
| G Capital Public |
ARIP Public and G Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARIP Public and G Capital
The main advantage of trading using opposite ARIP Public and G Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARIP Public position performs unexpectedly, G Capital 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 G Capital will offset losses from the drop in G Capital's long position.| ARIP Public vs. Moong Pattana International | ARIP Public vs. Premier Technology Public | ARIP Public vs. Sea Oil Public | ARIP Public vs. Thai Mitsuwa Public |
| G Capital vs. Multibax Public | G Capital vs. Forth Smart Service | G Capital vs. LPN Development Public | G Capital vs. Jasmine International Public |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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