Correlation Between OPEN HOUSE and AEON MALL
Can any of the company-specific risk be diversified away by investing in both OPEN HOUSE 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 OPEN HOUSE and AEON MALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPEN HOUSE GROUP and AEON MALL LTD, you can compare the effects of market volatilities on OPEN HOUSE 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 OPEN HOUSE with a short position of AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPEN HOUSE and AEON MALL.
Diversification Opportunities for OPEN HOUSE and AEON MALL
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OPEN and AEON is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding OPEN HOUSE GROUP 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 OPEN HOUSE 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 OPEN HOUSE GROUP 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 OPEN HOUSE i.e., OPEN HOUSE and AEON MALL go up and down completely randomly.
Pair Corralation between OPEN HOUSE and AEON MALL
Assuming the 90 days horizon OPEN HOUSE GROUP is expected to generate 2.19 times more return on investment than AEON MALL. However, OPEN HOUSE is 2.19 times more volatile than AEON MALL LTD. It trades about 0.04 of its potential returns per unit of risk. AEON MALL LTD is currently generating about 0.01 per unit of risk. If you would invest 2,310 in OPEN HOUSE GROUP on September 1, 2024 and sell it today you would earn a total of 1,170 from holding OPEN HOUSE GROUP or generate 50.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
OPEN HOUSE GROUP vs. AEON MALL LTD
Performance |
| Timeline |
| OPEN HOUSE GROUP |
| AEON MALL LTD |
OPEN HOUSE and AEON MALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPEN HOUSE and AEON MALL
The main advantage of trading using opposite OPEN HOUSE and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPEN HOUSE 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.| OPEN HOUSE vs. Austevoll Seafood ASA | OPEN HOUSE vs. United Natural Foods | OPEN HOUSE vs. MCEWEN MINING INC | OPEN HOUSE vs. Perseus Mining Limited |
| AEON MALL vs. OPEN HOUSE GROUP | AEON MALL vs. Superior Plus Corp | AEON MALL vs. NMI Holdings | AEON MALL vs. Origin Agritech |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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