Correlation Between Grande Asset and BuilderSmart Public
Can any of the company-specific risk be diversified away by investing in both Grande Asset and BuilderSmart Public 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 BuilderSmart Public 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 BuilderSmart Public, you can compare the effects of market volatilities on Grande Asset and BuilderSmart Public 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 BuilderSmart Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Asset and BuilderSmart Public.
Diversification Opportunities for Grande Asset and BuilderSmart Public
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grande and BuilderSmart is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Grande Asset Hotels and BuilderSmart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BuilderSmart 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 BuilderSmart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BuilderSmart Public has no effect on the direction of Grande Asset i.e., Grande Asset and BuilderSmart Public go up and down completely randomly.
Pair Corralation between Grande Asset and BuilderSmart Public
Assuming the 90 days trading horizon Grande Asset Hotels is expected to under-perform the BuilderSmart Public. In addition to that, Grande Asset is 10.4 times more volatile than BuilderSmart Public. It trades about -0.03 of its total potential returns per unit of risk. BuilderSmart Public is currently generating about -0.06 per unit of volatility. If you would invest 181.00 in BuilderSmart Public on September 1, 2024 and sell it today you would lose (2.00) from holding BuilderSmart Public or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grande Asset Hotels vs. BuilderSmart Public
Performance |
| Timeline |
| Grande Asset Hotels |
| BuilderSmart Public |
Grande Asset and BuilderSmart Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Asset and BuilderSmart Public
The main advantage of trading using opposite Grande Asset and BuilderSmart Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Asset position performs unexpectedly, BuilderSmart Public 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 BuilderSmart Public will offset losses from the drop in BuilderSmart Public's long position.| Grande Asset vs. TRC Construction Public | Grande Asset vs. Bangkok Expressway and | Grande Asset vs. Lohakit Metal Public | Grande Asset vs. Gunkul Engineering Public |
| BuilderSmart Public vs. Getabec Public | BuilderSmart Public vs. E for L | BuilderSmart Public vs. Salee Colour Public | BuilderSmart Public vs. CI Group 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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