Correlation Between Ditto Public and Asia Metal
Can any of the company-specific risk be diversified away by investing in both Ditto Public and Asia Metal 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 Ditto Public and Asia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ditto Public and Asia Metal Public, you can compare the effects of market volatilities on Ditto Public and Asia Metal 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 Ditto Public with a short position of Asia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ditto Public and Asia Metal.
Diversification Opportunities for Ditto Public and Asia Metal
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ditto and Asia is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ditto Public and Asia Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Metal Public and Ditto 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 Ditto Public are associated (or correlated) with Asia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Metal Public has no effect on the direction of Ditto Public i.e., Ditto Public and Asia Metal go up and down completely randomly.
Pair Corralation between Ditto Public and Asia Metal
Assuming the 90 days trading horizon Ditto Public is expected to under-perform the Asia Metal. But the stock apears to be less risky and, when comparing its historical volatility, Ditto Public is 15.88 times less risky than Asia Metal. The stock trades about -0.05 of its potential returns per unit of risk. The Asia Metal Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Asia Metal Public on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Asia Metal Public or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Ditto Public vs. Asia Metal Public
Performance |
| Timeline |
| Ditto Public |
| Asia Metal Public |
Ditto Public and Asia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ditto Public and Asia Metal
The main advantage of trading using opposite Ditto Public and Asia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ditto Public position performs unexpectedly, Asia Metal 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 Asia Metal will offset losses from the drop in Asia Metal's long position.| Ditto Public vs. Dohome Public | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics Public | Ditto Public vs. KCE Electronics Public |
| Asia Metal vs. 2S Metal Public | Asia Metal vs. AAPICO Hitech Public | Asia Metal vs. CSP Steel Center | Asia Metal vs. Bangsaphan Barmill 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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