Correlation Between Ascencio and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Ascencio and Ion Beam 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 Ascencio and Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascencio and Ion Beam Applications, you can compare the effects of market volatilities on Ascencio and Ion Beam 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 Ascencio with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascencio and Ion Beam.
Diversification Opportunities for Ascencio and Ion Beam
Pay attention - limited upside
The 3 months correlation between Ascencio and Ion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ascencio and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Ascencio 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 Ascencio are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Ascencio i.e., Ascencio and Ion Beam go up and down completely randomly.
Pair Corralation between Ascencio and Ion Beam
Assuming the 90 days trading horizon Ascencio is expected to generate 0.66 times more return on investment than Ion Beam. However, Ascencio is 1.51 times less risky than Ion Beam. It trades about -0.04 of its potential returns per unit of risk. Ion Beam Applications is currently generating about -0.1 per unit of risk. If you would invest 4,770 in Ascencio on September 13, 2024 and sell it today you would lose (105.00) from holding Ascencio or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Ascencio vs. Ion Beam Applications
Performance |
| Timeline |
| Ascencio |
| Ion Beam Applications |
Ascencio and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascencio and Ion Beam
The main advantage of trading using opposite Ascencio and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascencio position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| Ascencio vs. Ion Beam Applications | Ascencio vs. Vastned Retail Belgium | Ascencio vs. Home Invest Belgium | Ascencio vs. Shurgard Self Storage |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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