Correlation Between Asia United and AgriNurture
Can any of the company-specific risk be diversified away by investing in both Asia United and AgriNurture 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 United and AgriNurture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia United Bank and AgriNurture, you can compare the effects of market volatilities on Asia United and AgriNurture 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 United with a short position of AgriNurture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia United and AgriNurture.
Diversification Opportunities for Asia United and AgriNurture
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and AgriNurture is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Asia United Bank and AgriNurture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriNurture and Asia United 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 United Bank are associated (or correlated) with AgriNurture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriNurture has no effect on the direction of Asia United i.e., Asia United and AgriNurture go up and down completely randomly.
Pair Corralation between Asia United and AgriNurture
Assuming the 90 days trading horizon Asia United Bank is expected to generate 0.52 times more return on investment than AgriNurture. However, Asia United Bank is 1.94 times less risky than AgriNurture. It trades about 0.35 of its potential returns per unit of risk. AgriNurture is currently generating about -0.04 per unit of risk. If you would invest 6,300 in Asia United Bank on November 2, 2024 and sell it today you would earn a total of 795.00 from holding Asia United Bank or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia United Bank vs. AgriNurture
Performance |
| Timeline |
| Asia United Bank |
| AgriNurture |
Asia United and AgriNurture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia United and AgriNurture
The main advantage of trading using opposite Asia United and AgriNurture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia United position performs unexpectedly, AgriNurture 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 AgriNurture will offset losses from the drop in AgriNurture's long position.| Asia United vs. National Reinsurance | Asia United vs. Integrated Micro Electronics | Asia United vs. Converge Information Communications | Asia United vs. Philippine Business Bank |
| AgriNurture vs. Puregold Price Club | AgriNurture vs. Cosco Capital | AgriNurture vs. Keepers Holdings | AgriNurture vs. Balai Ni Fruitas |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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