Correlation Between Azure Holding and Generation Asia
Can any of the company-specific risk be diversified away by investing in both Azure Holding and Generation Asia 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 Azure Holding and Generation Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azure Holding Group and Generation Asia I, you can compare the effects of market volatilities on Azure Holding and Generation Asia 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 Azure Holding with a short position of Generation Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azure Holding and Generation Asia.
Diversification Opportunities for Azure Holding and Generation Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Azure and Generation is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Azure Holding Group and Generation Asia I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Asia I and Azure Holding 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 Azure Holding Group are associated (or correlated) with Generation Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Asia I has no effect on the direction of Azure Holding i.e., Azure Holding and Generation Asia go up and down completely randomly.
Pair Corralation between Azure Holding and Generation Asia
If you would invest 9.01 in Azure Holding Group on November 3, 2024 and sell it today you would earn a total of 6.99 from holding Azure Holding Group or generate 77.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Azure Holding Group vs. Generation Asia I
Performance |
| Timeline |
| Azure Holding Group |
| Generation Asia I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Azure Holding and Generation Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azure Holding and Generation Asia
The main advantage of trading using opposite Azure Holding and Generation Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azure Holding position performs unexpectedly, Generation Asia 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 Generation Asia will offset losses from the drop in Generation Asia's long position.| Azure Holding vs. InfuSystems Holdings | Azure Holding vs. Adient PLC | Azure Holding vs. Rocky Brands | Azure Holding vs. Cars Inc |
| Generation Asia vs. Green Planet Bio | Generation Asia vs. Opus Magnum Ameris | Generation Asia vs. Azure Holding Group | Generation Asia vs. Four Leaf Acquisition |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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