Correlation Between Autocorp Holding and G Capital
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and G Capital 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 Autocorp Holding and G Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autocorp Holding Public and G Capital Public, you can compare the effects of market volatilities on Autocorp Holding and G Capital 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 Autocorp Holding with a short position of G Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and G Capital.
Diversification Opportunities for Autocorp Holding and G Capital
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autocorp and GCAP is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and G Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Capital Public and Autocorp Holding 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 Autocorp Holding Public are associated (or correlated) with G Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Capital Public has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and G Capital go up and down completely randomly.
Pair Corralation between Autocorp Holding and G Capital
Assuming the 90 days trading horizon Autocorp Holding Public is expected to generate 0.58 times more return on investment than G Capital. However, Autocorp Holding Public is 1.73 times less risky than G Capital. It trades about -0.1 of its potential returns per unit of risk. G Capital Public is currently generating about -0.06 per unit of risk. If you would invest 90.00 in Autocorp Holding Public on December 1, 2024 and sell it today you would lose (14.00) from holding Autocorp Holding Public or give up 15.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Autocorp Holding Public vs. G Capital Public
Performance |
Timeline |
Autocorp Holding Public |
G Capital Public |
Autocorp Holding and G Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Autocorp Holding and G Capital
The main advantage of trading using opposite Autocorp Holding and G Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, G Capital 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 G Capital will offset losses from the drop in G Capital's long position.Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering Public |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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