Correlation Between CAZ Public and AIRA Factoring
Can any of the company-specific risk be diversified away by investing in both CAZ Public and AIRA Factoring 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 CAZ Public and AIRA Factoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAZ Public and AIRA Factoring Public, you can compare the effects of market volatilities on CAZ Public and AIRA Factoring 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 CAZ Public with a short position of AIRA Factoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAZ Public and AIRA Factoring.
Diversification Opportunities for CAZ Public and AIRA Factoring
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CAZ and AIRA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CAZ Public and AIRA Factoring Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRA Factoring Public and CAZ Public 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 CAZ Public are associated (or correlated) with AIRA Factoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRA Factoring Public has no effect on the direction of CAZ Public i.e., CAZ Public and AIRA Factoring go up and down completely randomly.
Pair Corralation between CAZ Public and AIRA Factoring
Assuming the 90 days trading horizon CAZ Public is expected to generate 12.81 times more return on investment than AIRA Factoring. However, CAZ Public is 12.81 times more volatile than AIRA Factoring Public. It trades about 0.04 of its potential returns per unit of risk. AIRA Factoring Public is currently generating about -0.01 per unit of risk. If you would invest 387.00 in CAZ Public on September 3, 2024 and sell it today you would lose (155.00) from holding CAZ Public or give up 40.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAZ Public vs. AIRA Factoring Public
Performance |
| Timeline |
| CAZ Public |
| AIRA Factoring Public |
CAZ Public and AIRA Factoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAZ Public and AIRA Factoring
The main advantage of trading using opposite CAZ Public and AIRA Factoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAZ Public position performs unexpectedly, AIRA Factoring 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 AIRA Factoring will offset losses from the drop in AIRA Factoring's long position.| CAZ Public vs. Asia Green Energy | CAZ Public vs. Chularat Hospital Public | CAZ Public vs. AP Public | CAZ Public vs. Forth Smart Service |
| AIRA Factoring vs. Akkhie Prakarn Public | AIRA Factoring vs. Asia Green Energy | AIRA Factoring vs. G Capital Public | AIRA Factoring vs. ASIA Capital Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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