Correlation Between Asia United and Dizon Copper
Can any of the company-specific risk be diversified away by investing in both Asia United and Dizon Copper 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 Dizon Copper 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 Dizon Copper Silver, you can compare the effects of market volatilities on Asia United and Dizon Copper 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 Dizon Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia United and Dizon Copper.
Diversification Opportunities for Asia United and Dizon Copper
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Dizon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Asia United Bank and Dizon Copper Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dizon Copper Silver 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 Dizon Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dizon Copper Silver has no effect on the direction of Asia United i.e., Asia United and Dizon Copper go up and down completely randomly.
Pair Corralation between Asia United and Dizon Copper
Assuming the 90 days trading horizon Asia United Bank is expected to generate 0.37 times more return on investment than Dizon Copper. However, Asia United Bank is 2.69 times less risky than Dizon Copper. It trades about 0.31 of its potential returns per unit of risk. Dizon Copper Silver is currently generating about -0.21 per unit of risk. If you would invest 5,025 in Asia United Bank on August 29, 2024 and sell it today you would earn a total of 1,275 from holding Asia United Bank or generate 25.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 35.71% |
| Values | Daily Returns |
Asia United Bank vs. Dizon Copper Silver
Performance |
| Timeline |
| Asia United Bank |
| Dizon Copper Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asia United and Dizon Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia United and Dizon Copper
The main advantage of trading using opposite Asia United and Dizon Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia United position performs unexpectedly, Dizon Copper 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 Dizon Copper will offset losses from the drop in Dizon Copper's long position.| Asia United vs. Apex Mining Co | Asia United vs. Jollibee Foods Corp | Asia United vs. Allhome Corp | Asia United vs. STI Education Systems |
| Dizon Copper vs. Asia United Bank | Dizon Copper vs. Philippine Savings Bank | Dizon Copper vs. Robinsons Retail Holdings | Dizon Copper vs. Top Frontier Investment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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