Correlation Between Atesco Industrial and Global Electrical
Can any of the company-specific risk be diversified away by investing in both Atesco Industrial and Global Electrical 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 Atesco Industrial and Global Electrical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atesco Industrial Cartering and Global Electrical Technology, you can compare the effects of market volatilities on Atesco Industrial and Global Electrical 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 Atesco Industrial with a short position of Global Electrical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and Global Electrical.
Diversification Opportunities for Atesco Industrial and Global Electrical
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atesco and Global is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and Global Electrical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Electrical and Atesco Industrial 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 Atesco Industrial Cartering are associated (or correlated) with Global Electrical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Electrical has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and Global Electrical go up and down completely randomly.
Pair Corralation between Atesco Industrial and Global Electrical
Assuming the 90 days trading horizon Atesco Industrial Cartering is expected to generate 1.28 times more return on investment than Global Electrical. However, Atesco Industrial is 1.28 times more volatile than Global Electrical Technology. It trades about 0.05 of its potential returns per unit of risk. Global Electrical Technology is currently generating about 0.06 per unit of risk. If you would invest 1,100,000 in Atesco Industrial Cartering on August 31, 2024 and sell it today you would earn a total of 160,000 from holding Atesco Industrial Cartering or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.14% |
| Values | Daily Returns |
Atesco Industrial Cartering vs. Global Electrical Technology
Performance |
| Timeline |
| Atesco Industrial |
| Global Electrical |
Atesco Industrial and Global Electrical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atesco Industrial and Global Electrical
The main advantage of trading using opposite Atesco Industrial and Global Electrical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atesco Industrial position performs unexpectedly, Global Electrical 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 Global Electrical will offset losses from the drop in Global Electrical's long position.| Atesco Industrial vs. Song Hong Garment | Atesco Industrial vs. Alphanam ME | Atesco Industrial vs. Hochiminh City Metal | Atesco Industrial vs. Danang Education Investment |
| Global Electrical vs. Song Hong Garment | Global Electrical vs. Alphanam ME | Global Electrical vs. Hochiminh City Metal | Global Electrical vs. Atesco Industrial Cartering |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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