Correlation Between Asia Plus and Globlex Holding
Can any of the company-specific risk be diversified away by investing in both Asia Plus and Globlex Holding 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 Plus and Globlex Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Plus Group and Globlex Holding Management, you can compare the effects of market volatilities on Asia Plus and Globlex Holding 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 Plus with a short position of Globlex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Plus and Globlex Holding.
Diversification Opportunities for Asia Plus and Globlex Holding
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Asia and Globlex is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Asia Plus Group and Globlex Holding Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globlex Holding Mana and Asia Plus 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 Plus Group are associated (or correlated) with Globlex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globlex Holding Mana has no effect on the direction of Asia Plus i.e., Asia Plus and Globlex Holding go up and down completely randomly.
Pair Corralation between Asia Plus and Globlex Holding
Assuming the 90 days trading horizon Asia Plus Group is expected to generate 0.5 times more return on investment than Globlex Holding. However, Asia Plus Group is 1.99 times less risky than Globlex Holding. It trades about -0.1 of its potential returns per unit of risk. Globlex Holding Management is currently generating about -0.13 per unit of risk. If you would invest 236.00 in Asia Plus Group on November 3, 2024 and sell it today you would lose (4.00) from holding Asia Plus Group or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Plus Group vs. Globlex Holding Management
Performance |
| Timeline |
| Asia Plus Group |
| Globlex Holding Mana |
Asia Plus and Globlex Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Plus and Globlex Holding
The main advantage of trading using opposite Asia Plus and Globlex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Plus position performs unexpectedly, Globlex Holding 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 Globlex Holding will offset losses from the drop in Globlex Holding's long position.| Asia Plus vs. KGI Securities Public | Asia Plus vs. Bangkok Bank Public | Asia Plus vs. Land and Houses | Asia Plus vs. Italian Thai Development Public |
| Globlex Holding vs. Asia Plus Group | Globlex Holding vs. Eastern Commercial Leasing | Globlex Holding vs. Country Group Holdings | Globlex Holding vs. EMC Public |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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