Correlation Between Stock Exchange and Asia Medical
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Asia Medical 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 Medical 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 Medical Agricultural, you can compare the effects of market volatilities on Stock Exchange and Asia Medical 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 Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Asia Medical.
Diversification Opportunities for Stock Exchange and Asia Medical
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stock and Asia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Asia Medical Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Medical Agricultural 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 Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Medical Agricultural has no effect on the direction of Stock Exchange i.e., Stock Exchange and Asia Medical go up and down completely randomly.
Pair Corralation between Stock Exchange and Asia Medical
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Asia Medical. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 4.65 times less risky than Asia Medical. The index trades about -0.07 of its potential returns per unit of risk. The Asia Medical Agricultural is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Asia Medical Agricultural on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Asia Medical Agricultural or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Asia Medical Agricultural
Performance |
| Timeline |
Stock Exchange and Asia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Asia Medical Agricultural
Pair trading matchups for Asia Medical
Pair Trading with Stock Exchange and Asia Medical
The main advantage of trading using opposite Stock Exchange and Asia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Asia Medical 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 Medical will offset losses from the drop in Asia Medical's long position.| Stock Exchange vs. Turnkey Communication Services | Stock Exchange vs. Winnergy Medical Public | Stock Exchange vs. Charoen Pokphand Foods | Stock Exchange vs. Information and Communication |
| Asia Medical vs. Asian Alliance International | Asia Medical vs. International Network System | Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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