Correlation Between CAZ Public and Bless Asset
Can any of the company-specific risk be diversified away by investing in both CAZ Public and Bless Asset 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 Bless Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAZ Public and Bless Asset Group, you can compare the effects of market volatilities on CAZ Public and Bless Asset 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 Bless Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAZ Public and Bless Asset.
Diversification Opportunities for CAZ Public and Bless Asset
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CAZ and Bless is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CAZ Public and Bless Asset Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bless Asset Group 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 Bless Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bless Asset Group has no effect on the direction of CAZ Public i.e., CAZ Public and Bless Asset go up and down completely randomly.
Pair Corralation between CAZ Public and Bless Asset
Assuming the 90 days trading horizon CAZ Public is expected to generate 23.81 times more return on investment than Bless Asset. However, CAZ Public is 23.81 times more volatile than Bless Asset Group. It trades about 0.08 of its potential returns per unit of risk. Bless Asset Group is currently generating about -0.07 per unit of risk. If you would invest 344.00 in CAZ Public on September 1, 2024 and sell it today you would lose (112.00) from holding CAZ Public or give up 32.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAZ Public vs. Bless Asset Group
Performance |
| Timeline |
| CAZ Public |
| Bless Asset Group |
CAZ Public and Bless Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAZ Public and Bless Asset
The main advantage of trading using opposite CAZ Public and Bless Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAZ Public position performs unexpectedly, Bless Asset 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 Bless Asset will offset losses from the drop in Bless Asset's long position.| CAZ Public vs. Power Solution Technologies | CAZ Public vs. Kingsmen CMTI Public | CAZ Public vs. Panjawattana Plastic Public | CAZ Public vs. Cho Thavee Public |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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