Correlation Between Alset Ehome and Frp Holdings

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

By analyzing existing cross correlation between Alset Ehome International and Frp Holdings Ord, you can compare the effects of market volatilities on Alset Ehome and Frp Holdings 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 Alset Ehome with a short position of Frp Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alset Ehome and Frp Holdings.

Diversification Opportunities for Alset Ehome and Frp Holdings

-0.14

Correlation Coefficient

Alset Ehome  Frp Holdings

Good diversification

The 3 months correlation between Alset and Frp is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alset Ehome International and Frp Holdings Ord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frp Holdings Ord and Alset Ehome 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 Alset Ehome International are associated (or correlated) with Frp Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frp Holdings Ord has no effect on the direction of Alset Ehome i.e., Alset Ehome and Frp Holdings go up and down completely randomly.

Pair Corralation between Alset Ehome and Frp Holdings

Considering the 90-day investment horizon Alset Ehome is expected to generate 3.57 times less return on investment than Frp Holdings. In addition to that, Alset Ehome is 3.92 times more volatile than Frp Holdings Ord. It trades about 0.0 of its total potential returns per unit of risk. Frp Holdings Ord is currently generating about 0.02 per unit of volatility. If you would invest  2,790  in Frp Holdings Ord on September 4, 2024 and sell it today you would earn a total of  390.00  from holding Frp Holdings Ord or generate 13.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alset Ehome International  vs.  Frp Holdings Ord

Alset Ehome International

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Alset Ehome International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical and fundamental indicators, Alset Ehome demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Frp Holdings Ord

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Frp Holdings Ord are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Frp Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Alset Ehome and Frp Holdings

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

The idea behind Alset Ehome International and Frp Holdings Ord 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..