Correlation Between Newcity Public and Pan Asia
Can any of the company-specific risk be diversified away by investing in both Newcity Public and Pan Asia 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 Newcity Public and Pan Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcity Public and Pan Asia Footwear, you can compare the effects of market volatilities on Newcity Public and Pan Asia 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 Newcity Public with a short position of Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcity Public and Pan Asia.
Diversification Opportunities for Newcity Public and Pan Asia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newcity and Pan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Newcity Public and Pan Asia Footwear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Footwear and Newcity Public 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 Newcity Public are associated (or correlated) with Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Footwear has no effect on the direction of Newcity Public i.e., Newcity Public and Pan Asia go up and down completely randomly.
Pair Corralation between Newcity Public and Pan Asia
Assuming the 90 days horizon Newcity Public is expected to under-perform the Pan Asia. In addition to that, Newcity Public is 2.03 times more volatile than Pan Asia Footwear. It trades about -0.32 of its total potential returns per unit of risk. Pan Asia Footwear is currently generating about -0.11 per unit of volatility. If you would invest 107.00 in Pan Asia Footwear on September 3, 2024 and sell it today you would lose (5.00) from holding Pan Asia Footwear or give up 4.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newcity Public vs. Pan Asia Footwear
Performance |
| Timeline |
| Newcity Public |
| Pan Asia Footwear |
Newcity Public and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcity Public and Pan Asia
The main advantage of trading using opposite Newcity Public and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcity Public position performs unexpectedly, Pan Asia 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 Pan Asia will offset losses from the drop in Pan Asia's long position.| Newcity Public vs. Central Pattana Public | Newcity Public vs. CP ALL Public | Newcity Public vs. Bangkok Dusit Medical | Newcity Public vs. Airports of Thailand |
| Pan Asia vs. Central Pattana Public | Pan Asia vs. CP ALL Public | Pan Asia vs. Bangkok Dusit Medical | Pan Asia vs. Airports of Thailand |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |