Correlation Between A1 Investments and Austchina Holdings
Can any of the company-specific risk be diversified away by investing in both A1 Investments and Austchina Holdings 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 A1 Investments and Austchina Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A1 Investments Resources and Austchina Holdings, you can compare the effects of market volatilities on A1 Investments and Austchina Holdings 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 A1 Investments with a short position of Austchina Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of A1 Investments and Austchina Holdings.
Diversification Opportunities for A1 Investments and Austchina Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AYI and Austchina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding A1 Investments Resources and Austchina Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austchina Holdings and A1 Investments 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 A1 Investments Resources are associated (or correlated) with Austchina Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austchina Holdings has no effect on the direction of A1 Investments i.e., A1 Investments and Austchina Holdings go up and down completely randomly.
Pair Corralation between A1 Investments and Austchina Holdings
If you would invest 0.40 in Austchina Holdings on September 14, 2024 and sell it today you would lose (0.30) from holding Austchina Holdings or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
A1 Investments Resources vs. Austchina Holdings
Performance |
| Timeline |
| A1 Investments Resources |
| Austchina Holdings |
A1 Investments and Austchina Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A1 Investments and Austchina Holdings
The main advantage of trading using opposite A1 Investments and Austchina Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A1 Investments position performs unexpectedly, Austchina Holdings 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 Austchina Holdings will offset losses from the drop in Austchina Holdings' long position.| A1 Investments vs. Farm Pride Foods | A1 Investments vs. Perseus Mining | A1 Investments vs. Dalaroo Metals | A1 Investments vs. Toys R Us |
| Austchina Holdings vs. Regal Investment | Austchina Holdings vs. Vulcan Steel | Austchina Holdings vs. Iron Road | Austchina Holdings vs. Australian United 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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