Correlation Between Rojana Industrial and Asian Phytoceuticals
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and Asian Phytoceuticals 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 Rojana Industrial and Asian Phytoceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and Asian Phytoceuticals Public, you can compare the effects of market volatilities on Rojana Industrial and Asian Phytoceuticals 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 Rojana Industrial with a short position of Asian Phytoceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Asian Phytoceuticals.
Diversification Opportunities for Rojana Industrial and Asian Phytoceuticals
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rojana and Asian is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and Asian Phytoceuticals Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Phytoceuticals and Rojana Industrial 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 Rojana Industrial Park are associated (or correlated) with Asian Phytoceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Phytoceuticals has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and Asian Phytoceuticals go up and down completely randomly.
Pair Corralation between Rojana Industrial and Asian Phytoceuticals
Assuming the 90 days trading horizon Rojana Industrial Park is expected to generate 0.95 times more return on investment than Asian Phytoceuticals. However, Rojana Industrial Park is 1.05 times less risky than Asian Phytoceuticals. It trades about 0.08 of its potential returns per unit of risk. Asian Phytoceuticals Public is currently generating about -0.53 per unit of risk. If you would invest 560.00 in Rojana Industrial Park on November 18, 2024 and sell it today you would earn a total of 15.00 from holding Rojana Industrial Park or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rojana Industrial Park vs. Asian Phytoceuticals Public
Performance |
| Timeline |
| Rojana Industrial Park |
| Asian Phytoceuticals |
Rojana Industrial and Asian Phytoceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Asian Phytoceuticals
The main advantage of trading using opposite Rojana Industrial and Asian Phytoceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, Asian Phytoceuticals 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 Asian Phytoceuticals will offset losses from the drop in Asian Phytoceuticals' long position.| Rojana Industrial vs. Sun Vending Technology | Rojana Industrial vs. Somboon Advance Technology | Rojana Industrial vs. Peerapat Technology Public | Rojana Industrial vs. East Coast Furnitech |
| Asian Phytoceuticals vs. Agripure Holdings Public | Asian Phytoceuticals vs. Amanah Leasing Public | Asian Phytoceuticals vs. Asia Green Energy | Asian Phytoceuticals vs. Asia Precision Public |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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