Correlation Between Atesco Industrial and Van Dien
Can any of the company-specific risk be diversified away by investing in both Atesco Industrial and Van Dien 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 Van Dien 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 Van Dien Fused, you can compare the effects of market volatilities on Atesco Industrial and Van Dien 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 Van Dien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and Van Dien.
Diversification Opportunities for Atesco Industrial and Van Dien
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atesco and Van is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and Van Dien Fused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Dien Fused 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 Van Dien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Dien Fused has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and Van Dien go up and down completely randomly.
Pair Corralation between Atesco Industrial and Van Dien
Assuming the 90 days trading horizon Atesco Industrial Cartering is expected to generate 1.67 times more return on investment than Van Dien. However, Atesco Industrial is 1.67 times more volatile than Van Dien Fused. It trades about 0.24 of its potential returns per unit of risk. Van Dien Fused is currently generating about 0.03 per unit of risk. If you would invest 1,290,000 in Atesco Industrial Cartering on September 15, 2024 and sell it today you would earn a total of 380,000 from holding Atesco Industrial Cartering or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.0% |
| Values | Daily Returns |
Atesco Industrial Cartering vs. Van Dien Fused
Performance |
| Timeline |
| Atesco Industrial |
| Van Dien Fused |
Atesco Industrial and Van Dien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atesco Industrial and Van Dien
The main advantage of trading using opposite Atesco Industrial and Van Dien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atesco Industrial position performs unexpectedly, Van Dien 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 Van Dien will offset losses from the drop in Van Dien'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 |
| Van Dien vs. Song Hong Garment | Van Dien vs. Alphanam ME | Van Dien vs. Hochiminh City Metal | Van Dien 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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