Correlation Between Stock Exchange and Asia Fiber
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Asia Fiber 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 Stock Exchange and Asia Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Asia Fiber Public, you can compare the effects of market volatilities on Stock Exchange and Asia Fiber 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 Stock Exchange with a short position of Asia Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Asia Fiber.
Diversification Opportunities for Stock Exchange and Asia Fiber
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stock and Asia is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Asia Fiber Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Fiber Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Asia Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Fiber Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Asia Fiber go up and down completely randomly.
Pair Corralation between Stock Exchange and Asia Fiber
Assuming the 90 days trading horizon Stock Exchange is expected to generate 150.57 times less return on investment than Asia Fiber. But when comparing it to its historical volatility, Stock Exchange Of is 105.41 times less risky than Asia Fiber. It trades about 0.05 of its potential returns per unit of risk. Asia Fiber Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 480.00 in Asia Fiber Public on August 27, 2024 and sell it today you would lose (6.00) from holding Asia Fiber Public or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Asia Fiber Public
Performance |
| Timeline |
Stock Exchange and Asia Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Asia Fiber Public
Pair trading matchups for Asia Fiber
Pair Trading with Stock Exchange and Asia Fiber
The main advantage of trading using opposite Stock Exchange and Asia Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Asia Fiber 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 Asia Fiber will offset losses from the drop in Asia Fiber's long position.| Stock Exchange vs. NSL Foods Public | Stock Exchange vs. Golden Ventures Leasehold | Stock Exchange vs. Saksiam Leasing Public | Stock Exchange vs. President Automobile Industries |
| Asia Fiber vs. SCB X Public | Asia Fiber vs. Kasikornbank Public | Asia Fiber vs. PTT Public | Asia Fiber vs. Kasikornbank 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |