Correlation Between Maui Land and Ascendas India
Can any of the company-specific risk be diversified away by investing in both Maui Land and Ascendas India 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 Maui Land and Ascendas India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maui Land Pineapple and Ascendas India Trust, you can compare the effects of market volatilities on Maui Land and Ascendas India 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 Maui Land with a short position of Ascendas India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and Ascendas India.
Diversification Opportunities for Maui Land and Ascendas India
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maui and Ascendas is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and Ascendas India Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendas India Trust and Maui Land 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 Maui Land Pineapple are associated (or correlated) with Ascendas India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendas India Trust has no effect on the direction of Maui Land i.e., Maui Land and Ascendas India go up and down completely randomly.
Pair Corralation between Maui Land and Ascendas India
Considering the 90-day investment horizon Maui Land Pineapple is expected to generate 1.75 times more return on investment than Ascendas India. However, Maui Land is 1.75 times more volatile than Ascendas India Trust. It trades about 0.01 of its potential returns per unit of risk. Ascendas India Trust is currently generating about -0.02 per unit of risk. If you would invest 2,389 in Maui Land Pineapple on August 28, 2024 and sell it today you would lose (36.00) from holding Maui Land Pineapple or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maui Land Pineapple vs. Ascendas India Trust
Performance |
| Timeline |
| Maui Land Pineapple |
| Ascendas India Trust |
Maui Land and Ascendas India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maui Land and Ascendas India
The main advantage of trading using opposite Maui Land and Ascendas India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, Ascendas India 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 Ascendas India will offset losses from the drop in Ascendas India's long position.| Maui Land vs. New England Realty | Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord |
| Ascendas India vs. Asia Pptys | Ascendas India vs. Adler Group SA | Ascendas India vs. Aztec Land Comb | Ascendas India vs. Ambase 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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