Correlation Between GMM Grammy and Asphere Innovations
Can any of the company-specific risk be diversified away by investing in both GMM Grammy and Asphere Innovations 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 GMM Grammy and Asphere Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMM Grammy Public and Asphere Innovations Public, you can compare the effects of market volatilities on GMM Grammy and Asphere Innovations 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 GMM Grammy with a short position of Asphere Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMM Grammy and Asphere Innovations.
Diversification Opportunities for GMM Grammy and Asphere Innovations
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between GMM and Asphere is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding GMM Grammy Public and Asphere Innovations Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asphere Innovations and GMM Grammy 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 GMM Grammy Public are associated (or correlated) with Asphere Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asphere Innovations has no effect on the direction of GMM Grammy i.e., GMM Grammy and Asphere Innovations go up and down completely randomly.
Pair Corralation between GMM Grammy and Asphere Innovations
Assuming the 90 days trading horizon GMM Grammy Public is expected to generate 0.45 times more return on investment than Asphere Innovations. However, GMM Grammy Public is 2.21 times less risky than Asphere Innovations. It trades about 0.04 of its potential returns per unit of risk. Asphere Innovations Public is currently generating about -0.01 per unit of risk. If you would invest 755.00 in GMM Grammy Public on September 1, 2024 and sell it today you would earn a total of 55.00 from holding GMM Grammy Public or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GMM Grammy Public vs. Asphere Innovations Public
Performance |
| Timeline |
| GMM Grammy Public |
| Asphere Innovations |
GMM Grammy and Asphere Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMM Grammy and Asphere Innovations
The main advantage of trading using opposite GMM Grammy and Asphere Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMM Grammy position performs unexpectedly, Asphere Innovations 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 Asphere Innovations will offset losses from the drop in Asphere Innovations' long position.| GMM Grammy vs. Healthlead Public | GMM Grammy vs. Ramkhamhaeng Hospital Public | GMM Grammy vs. AddTech Hub Public | GMM Grammy vs. Praram 9 Hospital |
| Asphere Innovations vs. Bangkok Chain Hospital | Asphere Innovations vs. Jay Mart Public | Asphere Innovations vs. Energy Absolute Public | Asphere Innovations vs. Delta Electronics 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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