Correlation Between Asia Plastic and Airmate Cayman
Can any of the company-specific risk be diversified away by investing in both Asia Plastic and Airmate Cayman 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 Asia Plastic and Airmate Cayman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Plastic Recycling and Airmate Cayman International, you can compare the effects of market volatilities on Asia Plastic and Airmate Cayman 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 Asia Plastic with a short position of Airmate Cayman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Plastic and Airmate Cayman.
Diversification Opportunities for Asia Plastic and Airmate Cayman
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Airmate is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Asia Plastic Recycling and Airmate Cayman International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airmate Cayman Inter and Asia Plastic 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 Asia Plastic Recycling are associated (or correlated) with Airmate Cayman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airmate Cayman Inter has no effect on the direction of Asia Plastic i.e., Asia Plastic and Airmate Cayman go up and down completely randomly.
Pair Corralation between Asia Plastic and Airmate Cayman
Assuming the 90 days trading horizon Asia Plastic Recycling is expected to under-perform the Airmate Cayman. In addition to that, Asia Plastic is 1.69 times more volatile than Airmate Cayman International. It trades about -0.01 of its total potential returns per unit of risk. Airmate Cayman International is currently generating about 0.0 per unit of volatility. If you would invest 1,400 in Airmate Cayman International on December 21, 2024 and sell it today you would lose (5.00) from holding Airmate Cayman International or give up 0.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.21% |
Values | Daily Returns |
Asia Plastic Recycling vs. Airmate Cayman International
Performance |
Timeline |
Asia Plastic Recycling |
Airmate Cayman Inter |
Asia Plastic and Airmate Cayman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asia Plastic and Airmate Cayman
The main advantage of trading using opposite Asia Plastic and Airmate Cayman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Plastic position performs unexpectedly, Airmate Cayman 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 Airmate Cayman will offset losses from the drop in Airmate Cayman's long position.Asia Plastic vs. Victory New Materials | Asia Plastic vs. Hunya Foods Co | Asia Plastic vs. YCC Parts MFG | Asia Plastic vs. Kwong Fong Industries |
Airmate Cayman vs. Tex Ray Industrial Co | Airmate Cayman vs. Kaulin Mfg | Airmate Cayman vs. De Licacy Industrial | Airmate Cayman vs. Asia Plastic Recycling |
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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