Correlation Between Asphere Innovations and BEC World
Can any of the company-specific risk be diversified away by investing in both Asphere Innovations and BEC 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 Asphere Innovations and BEC World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asphere Innovations Public and BEC World Public, you can compare the effects of market volatilities on Asphere Innovations and BEC 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 Asphere Innovations with a short position of BEC World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asphere Innovations and BEC World.
Diversification Opportunities for Asphere Innovations and BEC World
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asphere and BEC is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Asphere Innovations Public and BEC World Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEC World Public and Asphere Innovations 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 Asphere Innovations Public are associated (or correlated) with BEC World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEC World Public has no effect on the direction of Asphere Innovations i.e., Asphere Innovations and BEC World go up and down completely randomly.
Pair Corralation between Asphere Innovations and BEC World
Assuming the 90 days horizon Asphere Innovations Public is expected to under-perform the BEC World. But the stock apears to be less risky and, when comparing its historical volatility, Asphere Innovations Public is 16.68 times less risky than BEC World. The stock trades about -0.01 of its potential returns per unit of risk. The BEC World Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 441.00 in BEC World Public on September 1, 2024 and sell it today you would lose (43.00) from holding BEC World Public or give up 9.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Asphere Innovations Public vs. BEC World Public
Performance |
| Timeline |
| Asphere Innovations |
| BEC World Public |
Asphere Innovations and BEC World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asphere Innovations and BEC World
The main advantage of trading using opposite Asphere Innovations and BEC World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asphere Innovations position performs unexpectedly, BEC 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 BEC World will offset losses from the drop in BEC World's long position.| Asphere Innovations vs. Bangkok Chain Hospital | Asphere Innovations vs. Jay Mart Public | Asphere Innovations vs. Energy Absolute Public | Asphere Innovations vs. Delta Electronics Public |
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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 Stocks Directory module to find actively traded stocks across global markets.
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