Correlation Between Minor International and Asian Sea
Can any of the company-specific risk be diversified away by investing in both Minor International and Asian Sea 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 Minor International and Asian Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International Public and Asian Sea, you can compare the effects of market volatilities on Minor International and Asian Sea 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 Minor International with a short position of Asian Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Asian Sea.
Diversification Opportunities for Minor International and Asian Sea
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Minor and Asian is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Minor International Public and Asian Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Sea and Minor 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 Minor International Public are associated (or correlated) with Asian Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Sea has no effect on the direction of Minor International i.e., Minor International and Asian Sea go up and down completely randomly.
Pair Corralation between Minor International and Asian Sea
Assuming the 90 days trading horizon Minor International Public is expected to generate 1.27 times more return on investment than Asian Sea. However, Minor International is 1.27 times more volatile than Asian Sea. It trades about 0.06 of its potential returns per unit of risk. Asian Sea is currently generating about -0.26 per unit of risk. If you would invest 2,650 in Minor International Public on August 31, 2024 and sell it today you would earn a total of 50.00 from holding Minor International Public or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minor International Public vs. Asian Sea
Performance |
| Timeline |
| Minor International |
| Asian Sea |
Minor International and Asian Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and Asian Sea
The main advantage of trading using opposite Minor International and Asian Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International position performs unexpectedly, Asian Sea 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 Asian Sea will offset losses from the drop in Asian Sea's long position.| Minor International vs. TRC Construction Public | Minor International vs. Bangkok Expressway and | Minor International vs. Lohakit Metal Public | Minor International vs. Gunkul Engineering Public |
| Asian Sea vs. GFPT Public | Asian Sea vs. Carabao Group Public | Asian Sea vs. Thai Union Group | Asian Sea vs. Agripure Holdings 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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