Correlation Between Central Retail and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both Central Retail and Autocorp Holding 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 Central Retail and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Retail and Autocorp Holding Public, you can compare the effects of market volatilities on Central Retail and Autocorp Holding 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 Central Retail with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Retail and Autocorp Holding.
Diversification Opportunities for Central Retail and Autocorp Holding
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Central and Autocorp is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Central Retail and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Central Retail 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 Central Retail are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Central Retail i.e., Central Retail and Autocorp Holding go up and down completely randomly.
Pair Corralation between Central Retail and Autocorp Holding
Assuming the 90 days trading horizon Central Retail is expected to generate 76.21 times less return on investment than Autocorp Holding. But when comparing it to its historical volatility, Central Retail is 56.6 times less risky than Autocorp Holding. It trades about 0.1 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Autocorp Holding Public on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Autocorp Holding Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Retail vs. Autocorp Holding Public
Performance |
| Timeline |
| Central Retail |
| Autocorp Holding Public |
Central Retail and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Retail and Autocorp Holding
The main advantage of trading using opposite Central Retail and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Retail position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| Central Retail vs. Premier Marketing Public | Central Retail vs. Porn Prom Metal | Central Retail vs. Mena Transport Public | Central Retail vs. Thai Life Insurance |
| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering Public |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |