Correlation Between Grand City and Asia Pptys
Can any of the company-specific risk be diversified away by investing in both Grand City and Asia Pptys 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 Grand City and Asia Pptys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand City Properties and Asia Pptys, you can compare the effects of market volatilities on Grand City and Asia Pptys 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 Grand City with a short position of Asia Pptys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand City and Asia Pptys.
Diversification Opportunities for Grand City and Asia Pptys
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grand and Asia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Grand City Properties and Asia Pptys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pptys and Grand City 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 Grand City Properties are associated (or correlated) with Asia Pptys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pptys has no effect on the direction of Grand City i.e., Grand City and Asia Pptys go up and down completely randomly.
Pair Corralation between Grand City and Asia Pptys
Assuming the 90 days horizon Grand City Properties is expected to under-perform the Asia Pptys. But the pink sheet apears to be less risky and, when comparing its historical volatility, Grand City Properties is 24.69 times less risky than Asia Pptys. The pink sheet trades about -0.29 of its potential returns per unit of risk. The Asia Pptys is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Asia Pptys on September 24, 2024 and sell it today you would lose (1.20) from holding Asia Pptys or give up 24.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Grand City Properties vs. Asia Pptys
Performance |
Timeline |
Grand City Properties |
Asia Pptys |
Grand City and Asia Pptys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grand City and Asia Pptys
The main advantage of trading using opposite Grand City and Asia Pptys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand City position performs unexpectedly, Asia Pptys 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 Asia Pptys will offset losses from the drop in Asia Pptys' long position.Grand City vs. Asia Pptys | Grand City vs. Adler Group SA | Grand City vs. Ambase Corp | Grand City vs. Bridgemarq Real Estate |
Asia Pptys vs. Adler Group SA | Asia Pptys vs. Ambase Corp | Asia Pptys vs. Bridgemarq Real Estate | Asia Pptys vs. Agritek Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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