Correlation Between Exotic Food and Asia Medical
Can any of the company-specific risk be diversified away by investing in both Exotic Food 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 Exotic Food and Asia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exotic Food Public and Asia Medical Agricultural, you can compare the effects of market volatilities on Exotic Food 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 Exotic Food with a short position of Asia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exotic Food and Asia Medical.
Diversification Opportunities for Exotic Food and Asia Medical
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Exotic and Asia is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Exotic Food Public 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 Exotic Food 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 Exotic Food Public 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 Exotic Food i.e., Exotic Food and Asia Medical go up and down completely randomly.
Pair Corralation between Exotic Food and Asia Medical
Assuming the 90 days horizon Exotic Food Public is expected to under-perform the Asia Medical. In addition to that, Exotic Food is 1.86 times more volatile than Asia Medical Agricultural. It trades about -0.35 of its total potential returns per unit of risk. Asia Medical Agricultural is currently generating about 0.06 per unit of volatility. If you would invest 124.00 in Asia Medical Agricultural on October 23, 2024 and sell it today you would earn a total of 2.00 from holding Asia Medical Agricultural or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exotic Food Public vs. Asia Medical Agricultural
Performance |
| Timeline |
| Exotic Food Public |
| Asia Medical Agricultural |
Exotic Food and Asia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exotic Food and Asia Medical
The main advantage of trading using opposite Exotic Food and Asia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exotic Food 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.| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart Public |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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