Correlation Between RaemongRaein and Aniplus

Can any of the company-specific risk be diversified away by investing in both RaemongRaein and Aniplus 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 RaemongRaein and Aniplus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RaemongRaein Co and Aniplus, you can compare the effects of market volatilities on RaemongRaein and Aniplus 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 RaemongRaein with a short position of Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of RaemongRaein and Aniplus.

Diversification Opportunities for RaemongRaein and Aniplus

-0.22

Correlation Coefficient

RaemongRaein  Aniplus

Very good diversification

The 3 months correlation between RaemongRaein and Aniplus is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding RaemongRaein Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus and RaemongRaein 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 RaemongRaein Co are associated (or correlated) with Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of RaemongRaein i.e., RaemongRaein and Aniplus go up and down completely randomly.

Pair Corralation between RaemongRaein and Aniplus

Assuming the 90 days trading horizon RaemongRaein Co is expected to under-perform the Aniplus. In addition to that, RaemongRaein is 1.55 times more volatile than Aniplus. It trades about -0.06 of its total potential returns per unit of risk. Aniplus is currently generating about 0.16 per unit of volatility. If you would invest  256,500  in Aniplus on December 27, 2024 and sell it today you would earn a total of  47,500  from holding Aniplus or generate 18.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.28%
Values	Daily Returns

RaemongRaein Co  vs.  Aniplus

RaemongRaein

Risk-Adjusted Performance

Very Weak

Over the last 90 days RaemongRaein Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Aniplus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aniplus are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Aniplus sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RaemongRaein and Aniplus

The main advantage of trading using opposite RaemongRaein and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RaemongRaein position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.

The idea behind RaemongRaein Co and Aniplus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .