Correlation Between State Trading and ASK AUTOMOTIVE
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By analyzing existing cross correlation between The State Trading and ASK AUTOMOTIVE LIMITED, you can compare the effects of market volatilities on State Trading and ASK AUTOMOTIVE 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 State Trading with a short position of ASK AUTOMOTIVE. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Trading and ASK AUTOMOTIVE.
Diversification Opportunities for State Trading and ASK AUTOMOTIVE
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and ASK is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding The State Trading and ASK AUTOMOTIVE LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASK AUTOMOTIVE and State Trading 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 The State Trading are associated (or correlated) with ASK AUTOMOTIVE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASK AUTOMOTIVE has no effect on the direction of State Trading i.e., State Trading and ASK AUTOMOTIVE go up and down completely randomly.
Pair Corralation between State Trading and ASK AUTOMOTIVE
Assuming the 90 days trading horizon The State Trading is expected to generate 1.6 times more return on investment than ASK AUTOMOTIVE. However, State Trading is 1.6 times more volatile than ASK AUTOMOTIVE LIMITED. It trades about 0.05 of its potential returns per unit of risk. ASK AUTOMOTIVE LIMITED is currently generating about 0.07 per unit of risk. If you would invest 8,010 in The State Trading on August 27, 2024 and sell it today you would earn a total of 6,835 from holding The State Trading or generate 85.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.38% |
| Values | Daily Returns |
The State Trading vs. ASK AUTOMOTIVE LIMITED
Performance |
| Timeline |
| State Trading |
| ASK AUTOMOTIVE |
State Trading and ASK AUTOMOTIVE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Trading and ASK AUTOMOTIVE
The main advantage of trading using opposite State Trading and ASK AUTOMOTIVE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Trading position performs unexpectedly, ASK AUTOMOTIVE 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 ASK AUTOMOTIVE will offset losses from the drop in ASK AUTOMOTIVE's long position.| State Trading vs. Kingfa Science Technology | State Trading vs. Rico Auto Industries | State Trading vs. GACM Technologies Limited | State Trading vs. COSMO FIRST LIMITED |
| ASK AUTOMOTIVE vs. The State Trading | ASK AUTOMOTIVE vs. Bharat Road Network | ASK AUTOMOTIVE vs. Jindal Poly Investment | ASK AUTOMOTIVE vs. SINCLAIRS HOTELS ORD |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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