Correlation Between Asia Plus and Humanica Public
Can any of the company-specific risk be diversified away by investing in both Asia Plus and Humanica Public 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 Humanica Public 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 Humanica Public, you can compare the effects of market volatilities on Asia Plus and Humanica Public 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 Humanica Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Plus and Humanica Public.
Diversification Opportunities for Asia Plus and Humanica Public
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asia and Humanica is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Asia Plus Group and Humanica Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanica Public 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 Humanica Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humanica Public has no effect on the direction of Asia Plus i.e., Asia Plus and Humanica Public go up and down completely randomly.
Pair Corralation between Asia Plus and Humanica Public
Assuming the 90 days trading horizon Asia Plus Group is expected to under-perform the Humanica Public. But the stock apears to be less risky and, when comparing its historical volatility, Asia Plus Group is 2.02 times less risky than Humanica Public. The stock trades about -0.01 of its potential returns per unit of risk. The Humanica Public is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 964.00 in Humanica Public on August 31, 2024 and sell it today you would lose (59.00) from holding Humanica Public or give up 6.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.73% |
Values | Daily Returns |
Asia Plus Group vs. Humanica Public
Performance |
Timeline |
Asia Plus Group |
Humanica Public |
Asia Plus and Humanica Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asia Plus and Humanica Public
The main advantage of trading using opposite Asia Plus and Humanica Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Plus position performs unexpectedly, Humanica Public 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 Humanica Public will offset losses from the drop in Humanica Public's long position.The idea behind Asia Plus Group and Humanica Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Humanica Public vs. AP Public | Humanica Public vs. Jasmine International Public | Humanica Public vs. Asia Plus Group | Humanica Public vs. Bangchak 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |