Correlation Between Asia Global and Cable One
Can any of the company-specific risk be diversified away by investing in both Asia Global and Cable One 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 Cable One 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 Cable One, you can compare the effects of market volatilities on Asia Global and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Global and Cable One.
Diversification Opportunities for Asia Global and Cable One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asia and Cable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asia Global Crossing and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of Asia Global i.e., Asia Global and Cable One go up and down completely randomly.
Pair Corralation between Asia Global and Cable One
If you would invest 33,689 in Cable One on August 31, 2024 and sell it today you would earn a total of 8,268 from holding Cable One or generate 24.54% 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. Cable One
Performance |
| Timeline |
| Asia Global Crossing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cable One |
Asia Global and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Global and Cable One
The main advantage of trading using opposite Asia Global and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Global position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| Asia Global vs. BCE Inc | Asia Global vs. Advanced Info Service | Asia Global vs. American Nortel Communications | Asia Global vs. Axiologix |
| Cable One vs. Liberty Broadband Srs | Cable One vs. Liberty Broadband Corp | Cable One vs. Telkom Indonesia Tbk | Cable One vs. Liberty Global PLC |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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