Correlation Between Ashtead Technology and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both Ashtead Technology and Sabien Technology 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 Ashtead Technology and Sabien Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtead Technology Holdings and Sabien Technology Group, you can compare the effects of market volatilities on Ashtead Technology and Sabien Technology 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 Ashtead Technology with a short position of Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtead Technology and Sabien Technology.
Diversification Opportunities for Ashtead Technology and Sabien Technology
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashtead and Sabien is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ashtead Technology Holdings and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology and Ashtead Technology 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 Ashtead Technology Holdings are associated (or correlated) with Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Ashtead Technology i.e., Ashtead Technology and Sabien Technology go up and down completely randomly.
Pair Corralation between Ashtead Technology and Sabien Technology
Assuming the 90 days trading horizon Ashtead Technology Holdings is expected to generate 1.01 times more return on investment than Sabien Technology. However, Ashtead Technology is 1.01 times more volatile than Sabien Technology Group. It trades about -0.3 of its potential returns per unit of risk. Sabien Technology Group is currently generating about -0.43 per unit of risk. If you would invest 57,800 in Ashtead Technology Holdings on November 28, 2024 and sell it today you would lose (5,900) from holding Ashtead Technology Holdings or give up 10.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashtead Technology Holdings vs. Sabien Technology Group
Performance |
| Timeline |
| Ashtead Technology |
| Sabien Technology |
Ashtead Technology and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtead Technology and Sabien Technology
The main advantage of trading using opposite Ashtead Technology and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtead Technology position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| Ashtead Technology vs. OneSavings Bank PLC | Ashtead Technology vs. New Residential Investment | Ashtead Technology vs. Sartorius Stedim Biotech | Ashtead Technology vs. Infineon Technologies AG |
| Sabien Technology vs. Gaztransport et Technigaz | Sabien Technology vs. Gamma Communications PLC | Sabien Technology vs. Dolly Varden Silver | Sabien Technology vs. Atalaya Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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