Correlation Between Crown Asia and International Container
Can any of the company-specific risk be diversified away by investing in both Crown Asia and International Container 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 Crown Asia and International Container into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crown Asia Chemicals and International Container Terminal, you can compare the effects of market volatilities on Crown Asia and International Container 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 Crown Asia with a short position of International Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Asia and International Container.
Diversification Opportunities for Crown Asia and International Container
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Crown and International is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Crown Asia Chemicals and International Container Termin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Container and Crown Asia 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 Crown Asia Chemicals are associated (or correlated) with International Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Container has no effect on the direction of Crown Asia i.e., Crown Asia and International Container go up and down completely randomly.
Pair Corralation between Crown Asia and International Container
Assuming the 90 days trading horizon Crown Asia is expected to generate 2.16 times less return on investment than International Container. But when comparing it to its historical volatility, Crown Asia Chemicals is 1.05 times less risky than International Container. It trades about 0.05 of its potential returns per unit of risk. International Container Terminal is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 23,678 in International Container Terminal on September 12, 2024 and sell it today you would earn a total of 15,122 from holding International Container Terminal or generate 63.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Crown Asia Chemicals vs. International Container Termin
Performance |
| Timeline |
| Crown Asia Chemicals |
| International Container |
Crown Asia and International Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Asia and International Container
The main advantage of trading using opposite Crown Asia and International Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Asia position performs unexpectedly, International Container 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 International Container will offset losses from the drop in International Container's long position.| Crown Asia vs. Alliance Select Foods | Crown Asia vs. Union Bank of | Crown Asia vs. Philippine Business Bank | Crown Asia vs. Apex Mining Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |