Correlation Between OAKTRSPECLENDNEW and AEON MALL
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and AEON MALL 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 OAKTRSPECLENDNEW and AEON MALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and AEON MALL LTD, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and AEON MALL 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 OAKTRSPECLENDNEW with a short position of AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and AEON MALL.
Diversification Opportunities for OAKTRSPECLENDNEW and AEON MALL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OAKTRSPECLENDNEW and AEON is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL LTD and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and AEON MALL go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and AEON MALL
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to under-perform the AEON MALL. But the stock apears to be less risky and, when comparing its historical volatility, OAKTRSPECLENDNEW is 1.11 times less risky than AEON MALL. The stock trades about -0.03 of its potential returns per unit of risk. The AEON MALL LTD is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,090 in AEON MALL LTD on September 5, 2024 and sell it today you would earn a total of 190.00 from holding AEON MALL LTD or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. AEON MALL LTD
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| AEON MALL LTD |
OAKTRSPECLENDNEW and AEON MALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and AEON MALL
The main advantage of trading using opposite OAKTRSPECLENDNEW and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, AEON MALL 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 AEON MALL will offset losses from the drop in AEON MALL's long position.| OAKTRSPECLENDNEW vs. QURATE RETAIL INC | OAKTRSPECLENDNEW vs. Federal Agricultural Mortgage | OAKTRSPECLENDNEW vs. Hitachi Construction Machinery | OAKTRSPECLENDNEW vs. Penta Ocean Construction Co |
| AEON MALL vs. Granite Construction | AEON MALL vs. Hitachi Construction Machinery | AEON MALL vs. Sterling Construction | AEON MALL vs. BlueScope Steel Limited |
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.
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