Correlation Between Event Hospitality and Aspire Mining
Can any of the company-specific risk be diversified away by investing in both Event Hospitality and Aspire Mining 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 Event Hospitality and Aspire Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Event Hospitality and and Aspire Mining, you can compare the effects of market volatilities on Event Hospitality and Aspire Mining 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 Event Hospitality with a short position of Aspire Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Event Hospitality and Aspire Mining.
Diversification Opportunities for Event Hospitality and Aspire Mining
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Event and Aspire is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Event Hospitality and and Aspire Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspire Mining and Event Hospitality 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 Event Hospitality and are associated (or correlated) with Aspire Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspire Mining has no effect on the direction of Event Hospitality i.e., Event Hospitality and Aspire Mining go up and down completely randomly.
Pair Corralation between Event Hospitality and Aspire Mining
Assuming the 90 days trading horizon Event Hospitality is expected to generate 10.22 times less return on investment than Aspire Mining. But when comparing it to its historical volatility, Event Hospitality and is 3.84 times less risky than Aspire Mining. It trades about 0.03 of its potential returns per unit of risk. Aspire Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5.70 in Aspire Mining on December 23, 2024 and sell it today you would earn a total of 19.30 from holding Aspire Mining or generate 338.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Event Hospitality and vs. Aspire Mining
Performance |
| Timeline |
| Event Hospitality |
| Aspire Mining |
Event Hospitality and Aspire Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Event Hospitality and Aspire Mining
The main advantage of trading using opposite Event Hospitality and Aspire Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Event Hospitality position performs unexpectedly, Aspire Mining 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 Aspire Mining will offset losses from the drop in Aspire Mining's long position.| Event Hospitality vs. Asian Battery Metals | Event Hospitality vs. Group 6 Metals | Event Hospitality vs. oOhMedia | Event Hospitality vs. Kip McGrath Education |
| Aspire Mining vs. Ambertech | Aspire Mining vs. Technology One | Aspire Mining vs. Platinum Asset Management | Aspire Mining vs. Resonance Health |
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 Stocks Directory module to find actively traded stocks across global markets.
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