Correlation Between Origin Property and ALL ENERGY
Can any of the company-specific risk be diversified away by investing in both Origin Property and ALL ENERGY 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 Origin Property and ALL ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Property PCL and ALL ENERGY UTILITIES, you can compare the effects of market volatilities on Origin Property and ALL ENERGY 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 Origin Property with a short position of ALL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Property and ALL ENERGY.
Diversification Opportunities for Origin Property and ALL ENERGY
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Origin and ALL is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Origin Property PCL and ALL ENERGY UTILITIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALL ENERGY UTILITIES and Origin Property 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 Origin Property PCL are associated (or correlated) with ALL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALL ENERGY UTILITIES has no effect on the direction of Origin Property i.e., Origin Property and ALL ENERGY go up and down completely randomly.
Pair Corralation between Origin Property and ALL ENERGY
Assuming the 90 days trading horizon Origin Property PCL is expected to generate 0.8 times more return on investment than ALL ENERGY. However, Origin Property PCL is 1.26 times less risky than ALL ENERGY. It trades about -0.07 of its potential returns per unit of risk. ALL ENERGY UTILITIES is currently generating about -0.13 per unit of risk. If you would invest 366.00 in Origin Property PCL on November 2, 2024 and sell it today you would lose (16.00) from holding Origin Property PCL or give up 4.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Origin Property PCL vs. ALL ENERGY UTILITIES
Performance |
| Timeline |
| Origin Property PCL |
| ALL ENERGY UTILITIES |
Origin Property and ALL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Property and ALL ENERGY
The main advantage of trading using opposite Origin Property and ALL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Property position performs unexpectedly, ALL ENERGY 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 ALL ENERGY will offset losses from the drop in ALL ENERGY's long position.| Origin Property vs. AP Public | Origin Property vs. Land and Houses | Origin Property vs. WHA Public | Origin Property vs. Quality Houses Public |
| ALL ENERGY vs. Delta Electronics Public | ALL ENERGY vs. Delta Electronics Public | ALL ENERGY vs. Airports of Thailand | ALL ENERGY 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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