Correlation Between Grande Asset and Ama Marine
Can any of the company-specific risk be diversified away by investing in both Grande Asset and Ama Marine 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 Grande Asset and Ama Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Asset Hotels and Ama Marine Public, you can compare the effects of market volatilities on Grande Asset and Ama Marine 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 Grande Asset with a short position of Ama Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Asset and Ama Marine.
Diversification Opportunities for Grande Asset and Ama Marine
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grande and Ama is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Grande Asset Hotels and Ama Marine Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ama Marine Public and Grande Asset 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 Grande Asset Hotels are associated (or correlated) with Ama Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ama Marine Public has no effect on the direction of Grande Asset i.e., Grande Asset and Ama Marine go up and down completely randomly.
Pair Corralation between Grande Asset and Ama Marine
Assuming the 90 days trading horizon Grande Asset Hotels is expected to generate 30.13 times more return on investment than Ama Marine. However, Grande Asset is 30.13 times more volatile than Ama Marine Public. It trades about 0.04 of its potential returns per unit of risk. Ama Marine Public is currently generating about -0.02 per unit of risk. If you would invest 23.00 in Grande Asset Hotels on November 27, 2024 and sell it today you would lose (18.00) from holding Grande Asset Hotels or give up 78.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Asset Hotels vs. Ama Marine Public
Performance |
| Timeline |
| Grande Asset Hotels |
| Ama Marine Public |
Grande Asset and Ama Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Asset and Ama Marine
The main advantage of trading using opposite Grande Asset and Ama Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Asset position performs unexpectedly, Ama Marine 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 Ama Marine will offset losses from the drop in Ama Marine's long position.| Grande Asset vs. Bangkok Chain Hospital | Grande Asset vs. Wattanapat Hospital Trang | Grande Asset vs. MFC Asset Management | Grande Asset vs. Bumrungrad Hospital PCL |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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