Correlation Between Stock Exchange and Asian Sea
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Asian Sea 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 Asian Sea 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 Asian Sea, you can compare the effects of market volatilities on Stock Exchange and Asian Sea 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 Asian Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Asian Sea.
Diversification Opportunities for Stock Exchange and Asian Sea
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stock and Asian is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Asian Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Sea 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 Asian Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Sea has no effect on the direction of Stock Exchange i.e., Stock Exchange and Asian Sea go up and down completely randomly.
Pair Corralation between Stock Exchange and Asian Sea
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Asian Sea. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 3.55 times less risky than Asian Sea. The index trades about -0.01 of its potential returns per unit of risk. The Asian Sea is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 759.00 in Asian Sea on August 28, 2024 and sell it today you would earn a total of 106.00 from holding Asian Sea or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Asian Sea
Performance |
| Timeline |
Stock Exchange and Asian Sea Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Asian Sea
Pair trading matchups for Asian Sea
Pair Trading with Stock Exchange and Asian Sea
The main advantage of trading using opposite Stock Exchange and Asian Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Asian Sea 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 Sea will offset losses from the drop in Asian Sea'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 |
| Asian Sea vs. GFPT Public | Asian Sea vs. Carabao Group Public | Asian Sea vs. Thai Union Group | Asian Sea vs. Agripure Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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