Correlation Between ASIA Capital and AIRA Factoring

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

By analyzing existing cross correlation between ASIA Capital Group and AIRA Factoring Public, you can compare the effects of market volatilities on ASIA Capital and AIRA Factoring 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 Capital with a short position of AIRA Factoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASIA Capital and AIRA Factoring.

Diversification Opportunities for ASIA Capital and AIRA Factoring

0.0

Correlation Coefficient

ASIA Capital  AIRA Factoring

Pay attention - limited upside

The 3 months correlation between ASIA and AIRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASIA Capital Group and AIRA Factoring Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRA Factoring Public and ASIA Capital 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 Capital Group are associated (or correlated) with AIRA Factoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRA Factoring Public has no effect on the direction of ASIA Capital i.e., ASIA Capital and AIRA Factoring go up and down completely randomly.

Pair Corralation between ASIA Capital and AIRA Factoring

Assuming the 90 days trading horizon ASIA Capital Group is expected to under-perform the AIRA Factoring. In addition to that, ASIA Capital is 2.51 times more volatile than AIRA Factoring Public. It trades about -0.13 of its total potential returns per unit of risk. AIRA Factoring Public is currently generating about -0.22 per unit of volatility. If you would invest  70.00  in AIRA Factoring Public on December 28, 2024 and sell it today you would lose (37.00) from holding AIRA Factoring Public or give up 52.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

ASIA Capital Group  vs.  AIRA Factoring Public

ASIA Capital Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASIA Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

AIRA Factoring Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days AIRA Factoring Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with ASIA Capital and AIRA Factoring

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

The idea behind ASIA Capital Group and AIRA Factoring Public 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.