Correlation Between Asiabest Group and Del Monte

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

By analyzing existing cross correlation between Asiabest Group International and Del Monte Pacific, you can compare the effects of market volatilities on Asiabest Group and Del Monte 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 Asiabest Group with a short position of Del Monte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiabest Group and Del Monte.

Diversification Opportunities for Asiabest Group and Del Monte

-0.43

Correlation Coefficient

Asiabest Group  Del Monte

Very good diversification

The 3 months correlation between Asiabest and Del is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Asiabest Group International and Del Monte Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Del Monte Pacific and Asiabest Group 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 Asiabest Group International are associated (or correlated) with Del Monte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Del Monte Pacific has no effect on the direction of Asiabest Group i.e., Asiabest Group and Del Monte go up and down completely randomly.

Pair Corralation between Asiabest Group and Del Monte

Assuming the 90 days trading horizon Asiabest Group International is expected to generate 1.97 times more return on investment than Del Monte. However, Asiabest Group is 1.97 times more volatile than Del Monte Pacific. It trades about 0.62 of its potential returns per unit of risk. Del Monte Pacific is currently generating about -0.07 per unit of risk. If you would invest  535.00  in Asiabest Group International on October 12, 2024 and sell it today you would earn a total of  2,085  from holding Asiabest Group International or generate 389.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	84.44%
Values	Daily Returns

Asiabest Group International  vs.  Del Monte Pacific

Asiabest Group Inter

Risk-Adjusted Performance

0 of 100

Excellent

Over the last 90 days Asiabest Group International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak technical and fundamental indicators, Asiabest Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Del Monte Pacific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Del Monte Pacific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Asiabest Group and Del Monte

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

The idea behind Asiabest Group International and Del Monte Pacific 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.