Correlation Between Autosports and Asara Resources
Can any of the company-specific risk be diversified away by investing in both Autosports and Asara Resources 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 Autosports and Asara Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and Asara Resources, you can compare the effects of market volatilities on Autosports and Asara Resources 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 Autosports with a short position of Asara Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and Asara Resources.
Diversification Opportunities for Autosports and Asara Resources
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Autosports and Asara is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and Asara Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asara Resources and Autosports 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 Autosports Group are associated (or correlated) with Asara Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asara Resources has no effect on the direction of Autosports i.e., Autosports and Asara Resources go up and down completely randomly.
Pair Corralation between Autosports and Asara Resources
Assuming the 90 days trading horizon Autosports Group is expected to generate 0.35 times more return on investment than Asara Resources. However, Autosports Group is 2.84 times less risky than Asara Resources. It trades about -0.17 of its potential returns per unit of risk. Asara Resources is currently generating about -0.2 per unit of risk. If you would invest 188.00 in Autosports Group on October 14, 2024 and sell it today you would lose (10.00) from holding Autosports Group or give up 5.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autosports Group vs. Asara Resources
Performance |
| Timeline |
| Autosports Group |
| Asara Resources |
Autosports and Asara Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and Asara Resources
The main advantage of trading using opposite Autosports and Asara Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports position performs unexpectedly, Asara Resources 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 Asara Resources will offset losses from the drop in Asara Resources' long position.| Autosports vs. Chalice Mining Limited | Autosports vs. Hutchison Telecommunications | Autosports vs. Truscott Mining Corp | Autosports vs. ABACUS STORAGE KING |
| Asara Resources vs. Autosports Group | Asara Resources vs. Auctus Alternative Investments | Asara Resources vs. Collins Foods | Asara Resources vs. K2 Asset Management |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |