Correlation Between Home Pottery and Bless Asset
Can any of the company-specific risk be diversified away by investing in both Home Pottery and Bless Asset 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 Home Pottery and Bless Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Pottery Public and Bless Asset Group, you can compare the effects of market volatilities on Home Pottery and Bless Asset 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 Home Pottery with a short position of Bless Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Pottery and Bless Asset.
Diversification Opportunities for Home Pottery and Bless Asset
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Home and Bless is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Home Pottery Public and Bless Asset Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bless Asset Group and Home Pottery 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 Home Pottery Public are associated (or correlated) with Bless Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bless Asset Group has no effect on the direction of Home Pottery i.e., Home Pottery and Bless Asset go up and down completely randomly.
Pair Corralation between Home Pottery and Bless Asset
Assuming the 90 days trading horizon Home Pottery Public is expected to generate 0.68 times more return on investment than Bless Asset. However, Home Pottery Public is 1.47 times less risky than Bless Asset. It trades about -0.06 of its potential returns per unit of risk. Bless Asset Group is currently generating about -0.07 per unit of risk. If you would invest 56.00 in Home Pottery Public on September 1, 2024 and sell it today you would lose (11.00) from holding Home Pottery Public or give up 19.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Home Pottery Public vs. Bless Asset Group
Performance |
| Timeline |
| Home Pottery Public |
| Bless Asset Group |
Home Pottery and Bless Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Pottery and Bless Asset
The main advantage of trading using opposite Home Pottery and Bless Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Pottery position performs unexpectedly, Bless Asset 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 Bless Asset will offset losses from the drop in Bless Asset's long position.| Home Pottery vs. G Capital Public | Home Pottery vs. Filter Vision Public | Home Pottery vs. Chewathai Public | Home Pottery vs. The Erawan Group |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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