Correlation Between ALIOR BANK and ASM International
Can any of the company-specific risk be diversified away by investing in both ALIOR BANK and ASM International 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 ALIOR BANK and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALIOR BANK and ASM International NV, you can compare the effects of market volatilities on ALIOR BANK and ASM International 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 ALIOR BANK with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALIOR BANK and ASM International.
Diversification Opportunities for ALIOR BANK and ASM International
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALIOR and ASM is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ALIOR BANK and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and ALIOR BANK 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 ALIOR BANK are associated (or correlated) with ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of ALIOR BANK i.e., ALIOR BANK and ASM International go up and down completely randomly.
Pair Corralation between ALIOR BANK and ASM International
Assuming the 90 days trading horizon ALIOR BANK is expected to generate 0.77 times more return on investment than ASM International. However, ALIOR BANK is 1.3 times less risky than ASM International. It trades about 0.23 of its potential returns per unit of risk. ASM International NV is currently generating about -0.1 per unit of risk. If you would invest 2,013 in ALIOR BANK on December 27, 2024 and sell it today you would earn a total of 767.00 from holding ALIOR BANK or generate 38.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
ALIOR BANK vs. ASM International NV
Performance |
Timeline |
ALIOR BANK |
ASM International |
ALIOR BANK and ASM International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALIOR BANK and ASM International
The main advantage of trading using opposite ALIOR BANK and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALIOR BANK position performs unexpectedly, ASM International 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 ASM International will offset losses from the drop in ASM International's long position.ALIOR BANK vs. Medical Properties Trust | ALIOR BANK vs. IMAGIN MEDICAL INC | ALIOR BANK vs. tokentus investment AG | ALIOR BANK vs. Japan Asia Investment |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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