Correlation Between Asia United and Puregold Price
Can any of the company-specific risk be diversified away by investing in both Asia United and Puregold Price 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 Puregold Price 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 Puregold Price Club, you can compare the effects of market volatilities on Asia United and Puregold Price 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 Puregold Price. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia United and Puregold Price.
Diversification Opportunities for Asia United and Puregold Price
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asia and Puregold is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Asia United Bank and Puregold Price Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puregold Price Club 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 Puregold Price. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puregold Price Club has no effect on the direction of Asia United i.e., Asia United and Puregold Price go up and down completely randomly.
Pair Corralation between Asia United and Puregold Price
Assuming the 90 days trading horizon Asia United Bank is expected to generate 0.71 times more return on investment than Puregold Price. However, Asia United Bank is 1.42 times less risky than Puregold Price. It trades about 0.22 of its potential returns per unit of risk. Puregold Price Club is currently generating about 0.07 per unit of risk. If you would invest 5,980 in Asia United Bank on September 14, 2024 and sell it today you would earn a total of 270.00 from holding Asia United Bank or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Asia United Bank vs. Puregold Price Club
Performance |
| Timeline |
| Asia United Bank |
| Puregold Price Club |
Asia United and Puregold Price Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia United and Puregold Price
The main advantage of trading using opposite Asia United and Puregold Price positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia United position performs unexpectedly, Puregold Price 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 Puregold Price will offset losses from the drop in Puregold Price's long position.| Asia United vs. BDO Unibank | Asia United vs. Metropolitan Bank Trust | Asia United vs. Security Bank Corp | Asia United vs. Union Bank of |
| Puregold Price vs. Union Bank of | Puregold Price vs. Lepanto Consolidated Mining | Puregold Price vs. Metropolitan Bank Trust | Puregold Price vs. Metro Retail Stores |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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