Correlation Between AGAPE GLOBAL and CAVELL TOURISTIC
Can any of the company-specific risk be diversified away by investing in both AGAPE GLOBAL and CAVELL TOURISTIC 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 AGAPE GLOBAL and CAVELL TOURISTIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGAPE GLOBAL INVESTMENTS and CAVELL TOURISTIC INVESTMENTS, you can compare the effects of market volatilities on AGAPE GLOBAL and CAVELL TOURISTIC 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 AGAPE GLOBAL with a short position of CAVELL TOURISTIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGAPE GLOBAL and CAVELL TOURISTIC.
Diversification Opportunities for AGAPE GLOBAL and CAVELL TOURISTIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGAPE and CAVELL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGAPE GLOBAL INVESTMENTS and CAVELL TOURISTIC INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVELL TOURISTIC INV and AGAPE GLOBAL 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 AGAPE GLOBAL INVESTMENTS are associated (or correlated) with CAVELL TOURISTIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVELL TOURISTIC INV has no effect on the direction of AGAPE GLOBAL i.e., AGAPE GLOBAL and CAVELL TOURISTIC go up and down completely randomly.
Pair Corralation between AGAPE GLOBAL and CAVELL TOURISTIC
Assuming the 90 days trading horizon AGAPE GLOBAL INVESTMENTS is expected to generate 0.66 times more return on investment than CAVELL TOURISTIC. However, AGAPE GLOBAL INVESTMENTS is 1.51 times less risky than CAVELL TOURISTIC. It trades about -0.07 of its potential returns per unit of risk. CAVELL TOURISTIC INVESTMENTS is currently generating about -0.13 per unit of risk. If you would invest 185.00 in AGAPE GLOBAL INVESTMENTS on November 5, 2024 and sell it today you would lose (50.00) from holding AGAPE GLOBAL INVESTMENTS or give up 27.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 74.73% |
| Values | Daily Returns |
AGAPE GLOBAL INVESTMENTS vs. CAVELL TOURISTIC INVESTMENTS
Performance |
| Timeline |
| AGAPE GLOBAL INVESTMENTS |
| CAVELL TOURISTIC INV |
AGAPE GLOBAL and CAVELL TOURISTIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGAPE GLOBAL and CAVELL TOURISTIC
The main advantage of trading using opposite AGAPE GLOBAL and CAVELL TOURISTIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGAPE GLOBAL position performs unexpectedly, CAVELL TOURISTIC 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 CAVELL TOURISTIC will offset losses from the drop in CAVELL TOURISTIC's long position.| AGAPE GLOBAL vs. ASTORIA INVESTMENT LTD | AGAPE GLOBAL vs. BAYPORT MANAGEMENT LTD | AGAPE GLOBAL vs. UNITED INVESTMENTS LTD | AGAPE GLOBAL vs. NATIONAL INVESTMENT TRUST |
| CAVELL TOURISTIC vs. AGAPE GLOBAL INVESTMENTS | CAVELL TOURISTIC vs. CIM FINANCIAL SERVICES | CAVELL TOURISTIC vs. BAYPORT MANAGEMENT LTD | CAVELL TOURISTIC vs. UNITED INVESTMENTS LTD |
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 CEOs Directory module to screen CEOs from public companies around the world.
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