Correlation Between Asia Global and Advanced Info
Can any of the company-specific risk be diversified away by investing in both Asia Global and Advanced Info 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 Asia Global and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Global Crossing and Advanced Info Service, you can compare the effects of market volatilities on Asia Global and Advanced Info 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 Asia Global with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Global and Advanced Info.
Diversification Opportunities for Asia Global and Advanced Info
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asia and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asia Global Crossing and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and Asia Global 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 Asia Global Crossing are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of Asia Global i.e., Asia Global and Advanced Info go up and down completely randomly.
Pair Corralation between Asia Global and Advanced Info
If you would invest 834.00 in Advanced Info Service on August 28, 2024 and sell it today you would earn a total of 59.00 from holding Advanced Info Service or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Asia Global Crossing vs. Advanced Info Service
Performance |
| Timeline |
| Asia Global Crossing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Advanced Info Service |
Asia Global and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Global and Advanced Info
The main advantage of trading using opposite Asia Global and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Global position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info's long position.| Asia Global vs. BCE Inc | Asia Global vs. Advanced Info Service | Asia Global vs. American Nortel Communications | Asia Global vs. Axiologix |
| Advanced Info vs. BCE Inc | Advanced Info vs. Axiologix | Advanced Info vs. American Nortel Communications |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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