Correlation Between Transport International and AEON MALL
Can any of the company-specific risk be diversified away by investing in both Transport International and AEON MALL 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 Transport International and AEON MALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transport International Holdings and AEON MALL LTD, you can compare the effects of market volatilities on Transport International and AEON MALL 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 Transport International with a short position of AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transport International and AEON MALL.
Diversification Opportunities for Transport International and AEON MALL
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Transport and AEON is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Transport International Holdin and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL LTD and Transport International 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 Transport International Holdings are associated (or correlated) with AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of Transport International i.e., Transport International and AEON MALL go up and down completely randomly.
Pair Corralation between Transport International and AEON MALL
Assuming the 90 days horizon Transport International Holdings is expected to under-perform the AEON MALL. But the stock apears to be less risky and, when comparing its historical volatility, Transport International Holdings is 1.88 times less risky than AEON MALL. The stock trades about -0.07 of its potential returns per unit of risk. The AEON MALL LTD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,210 in AEON MALL LTD on September 13, 2024 and sell it today you would earn a total of 10.00 from holding AEON MALL LTD or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transport International Holdin vs. AEON MALL LTD
Performance |
| Timeline |
| Transport International |
| AEON MALL LTD |
Transport International and AEON MALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transport International and AEON MALL
The main advantage of trading using opposite Transport International and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transport International position performs unexpectedly, AEON MALL 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 AEON MALL will offset losses from the drop in AEON MALL's long position.| Transport International vs. CSX Corporation | Transport International vs. Westinghouse Air Brake | Transport International vs. Superior Plus Corp | Transport International vs. SIVERS SEMICONDUCTORS AB |
| AEON MALL vs. Shenandoah Telecommunications | AEON MALL vs. REGAL ASIAN INVESTMENTS | AEON MALL vs. Consolidated Communications Holdings | AEON MALL vs. Mobilezone Holding AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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