Correlation Between Asia United and Easycall Communications
Can any of the company-specific risk be diversified away by investing in both Asia United and Easycall Communications 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 Easycall Communications 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 Easycall Communications Philippines, you can compare the effects of market volatilities on Asia United and Easycall Communications 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 Easycall Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia United and Easycall Communications.
Diversification Opportunities for Asia United and Easycall Communications
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Easycall is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Asia United Bank and Easycall Communications Philip in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easycall Communications 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 Easycall Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easycall Communications has no effect on the direction of Asia United i.e., Asia United and Easycall Communications go up and down completely randomly.
Pair Corralation between Asia United and Easycall Communications
Assuming the 90 days trading horizon Asia United is expected to generate 1.63 times less return on investment than Easycall Communications. But when comparing it to its historical volatility, Asia United Bank is 8.23 times less risky than Easycall Communications. It trades about 0.59 of its potential returns per unit of risk. Easycall Communications Philippines is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 269.00 in Easycall Communications Philippines on October 24, 2024 and sell it today you would earn a total of 21.00 from holding Easycall Communications Philippines or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.94% |
| Values | Daily Returns |
Asia United Bank vs. Easycall Communications Philip
Performance |
| Timeline |
| Asia United Bank |
| Easycall Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asia United and Easycall Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia United and Easycall Communications
The main advantage of trading using opposite Asia United and Easycall Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia United position performs unexpectedly, Easycall Communications 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 Easycall Communications will offset losses from the drop in Easycall Communications' long position.| Asia United vs. Robinsons Retail Holdings | Asia United vs. Apex Mining Co | Asia United vs. Figaro Coffee Group | Asia United vs. Union Bank of |
| Easycall Communications vs. BDO Unibank | Easycall Communications vs. Union Bank of | Easycall Communications vs. Philex Mining Corp | Easycall Communications vs. Metropolitan Bank Trust |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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