Correlation Between Bank Central and Aslan Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Bank Central and Aslan Pharmaceuticals 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 Aslan Pharmaceuticals 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 Aslan Pharmaceuticals, you can compare the effects of market volatilities on Bank Central and Aslan Pharmaceuticals 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 Aslan Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Aslan Pharmaceuticals.
Diversification Opportunities for Bank Central and Aslan Pharmaceuticals
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Aslan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Aslan Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aslan Pharmaceuticals 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 Aslan Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aslan Pharmaceuticals has no effect on the direction of Bank Central i.e., Bank Central and Aslan Pharmaceuticals go up and down completely randomly.
Pair Corralation between Bank Central and Aslan Pharmaceuticals
If you would invest 1,605 in Bank Central Asia on September 12, 2024 and sell it today you would earn a total of 32.00 from holding Bank Central Asia or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Central Asia vs. Aslan Pharmaceuticals
Performance |
| Timeline |
| Bank Central Asia |
| Aslan Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Aslan Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Aslan Pharmaceuticals
The main advantage of trading using opposite Bank Central and Aslan Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Aslan Pharmaceuticals 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 Aslan Pharmaceuticals will offset losses from the drop in Aslan Pharmaceuticals' 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 |
| Aslan Pharmaceuticals vs. Monte Rosa Therapeutics | Aslan Pharmaceuticals vs. NewAmsterdam Pharma | Aslan Pharmaceuticals vs. Inventiva Sa | Aslan Pharmaceuticals vs. Cullinan Oncology LLC |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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