Correlation Between ATP 30 and G Capital
Can any of the company-specific risk be diversified away by investing in both ATP 30 and G Capital 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 ATP 30 and G Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATP 30 Public and G Capital Public, you can compare the effects of market volatilities on ATP 30 and G Capital 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 ATP 30 with a short position of G Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATP 30 and G Capital.
Diversification Opportunities for ATP 30 and G Capital
Very weak diversification
The 3 months correlation between ATP and GCAP is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ATP 30 Public and G Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Capital Public and ATP 30 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 ATP 30 Public are associated (or correlated) with G Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Capital Public has no effect on the direction of ATP 30 i.e., ATP 30 and G Capital go up and down completely randomly.
Pair Corralation between ATP 30 and G Capital
Assuming the 90 days trading horizon ATP 30 Public is expected to generate 1.0 times more return on investment than G Capital. However, ATP 30 Public is 1.0 times less risky than G Capital. It trades about 0.08 of its potential returns per unit of risk. G Capital Public is currently generating about 0.07 per unit of risk. If you would invest 95.00 in ATP 30 Public on September 3, 2024 and sell it today you would earn a total of 3.00 from holding ATP 30 Public or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATP 30 Public vs. G Capital Public
Performance |
| Timeline |
| ATP 30 Public |
| G Capital Public |
ATP 30 and G Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATP 30 and G Capital
The main advantage of trading using opposite ATP 30 and G Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATP 30 position performs unexpectedly, G Capital 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 G Capital will offset losses from the drop in G Capital's long position.| ATP 30 vs. Dynasty Ceramic Public | ATP 30 vs. Filter Vision Public | ATP 30 vs. East Coast Furnitech | ATP 30 vs. Asia Green Energy |
| G Capital vs. Multibax Public | G Capital vs. Forth Smart Service | G Capital vs. LPN Development Public | G Capital vs. Jasmine International 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |