Correlation Between Bank Central and Alset Capital
Can any of the company-specific risk be diversified away by investing in both Bank Central and Alset Capital 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 Bank Central and Alset Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Alset Capital Acquisition, you can compare the effects of market volatilities on Bank Central and Alset Capital 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 Bank Central with a short position of Alset Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Alset Capital.
Diversification Opportunities for Bank Central and Alset Capital
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Alset is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Alset Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alset Capital Acquisition and Bank Central 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 Bank Central Asia are associated (or correlated) with Alset Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alset Capital Acquisition has no effect on the direction of Bank Central i.e., Bank Central and Alset Capital go up and down completely randomly.
Pair Corralation between Bank Central and Alset Capital
If you would invest 1,610 in Bank Central Asia on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Bank Central Asia or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Central Asia vs. Alset Capital Acquisition
Performance |
| Timeline |
| Bank Central Asia |
| Alset Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Alset Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Alset Capital
The main advantage of trading using opposite Bank Central and Alset Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Alset Capital 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 Alset Capital will offset losses from the drop in Alset Capital's long position.| Bank Central vs. PT Bank Rakyat | Bank Central vs. Morningstar Unconstrained Allocation | Bank Central vs. Bondbloxx ETF Trust | Bank Central vs. Spring Valley Acquisition |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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