Correlation Between Agriculture Printing and Asia Commercial
Can any of the company-specific risk be diversified away by investing in both Agriculture Printing and Asia Commercial 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 Agriculture Printing and Asia Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agriculture Printing and and Asia Commercial Bank, you can compare the effects of market volatilities on Agriculture Printing and Asia Commercial 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 Agriculture Printing with a short position of Asia Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agriculture Printing and Asia Commercial.
Diversification Opportunities for Agriculture Printing and Asia Commercial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agriculture and Asia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Agriculture Printing and and Asia Commercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Commercial Bank and Agriculture Printing 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 Agriculture Printing and are associated (or correlated) with Asia Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Commercial Bank has no effect on the direction of Agriculture Printing i.e., Agriculture Printing and Asia Commercial go up and down completely randomly.
Pair Corralation between Agriculture Printing and Asia Commercial
Assuming the 90 days trading horizon Agriculture Printing and is expected to generate 1.24 times more return on investment than Asia Commercial. However, Agriculture Printing is 1.24 times more volatile than Asia Commercial Bank. It trades about 0.03 of its potential returns per unit of risk. Asia Commercial Bank is currently generating about 0.03 per unit of risk. If you would invest 5,200,000 in Agriculture Printing and on September 3, 2024 and sell it today you would earn a total of 280,000 from holding Agriculture Printing and or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.91% |
| Values | Daily Returns |
Agriculture Printing and vs. Asia Commercial Bank
Performance |
| Timeline |
| Agriculture Printing and |
| Asia Commercial Bank |
Agriculture Printing and Asia Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agriculture Printing and Asia Commercial
The main advantage of trading using opposite Agriculture Printing and Asia Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agriculture Printing position performs unexpectedly, Asia Commercial 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 Commercial will offset losses from the drop in Asia Commercial's long position.| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing vs. Alphanam ME |
| Asia Commercial vs. Military Insurance Corp | Asia Commercial vs. Fecon Mining JSC | Asia Commercial vs. Agriculture Printing and | Asia Commercial vs. BaoMinh Insurance Corp |
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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