Correlation Between AIRA Factoring and Chewathai Public

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Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Chewathai Public 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 AIRA Factoring and Chewathai Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Factoring Public and Chewathai Public, you can compare the effects of market volatilities on AIRA Factoring and Chewathai Public 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 AIRA Factoring with a short position of Chewathai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Chewathai Public.

Diversification Opportunities for AIRA Factoring and Chewathai Public

-0.06
  Correlation Coefficient

Good diversification

The 3 months correlation between AIRA and Chewathai is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Chewathai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chewathai Public and AIRA Factoring 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 AIRA Factoring Public are associated (or correlated) with Chewathai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chewathai Public has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Chewathai Public go up and down completely randomly.

Pair Corralation between AIRA Factoring and Chewathai Public

Assuming the 90 days horizon AIRA Factoring Public is expected to generate 0.82 times more return on investment than Chewathai Public. However, AIRA Factoring Public is 1.22 times less risky than Chewathai Public. It trades about 0.0 of its potential returns per unit of risk. Chewathai Public is currently generating about -0.14 per unit of risk. If you would invest  66.00  in AIRA Factoring Public on October 13, 2024 and sell it today you would lose (1.00) from holding AIRA Factoring Public or give up 1.52% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

AIRA Factoring Public  vs.  Chewathai Public

 Performance 
       Timeline  
AIRA Factoring Public 

Risk-Adjusted Performance

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Weak
 
Strong
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 quite persistent fundamental drivers, AIRA Factoring is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Chewathai Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Chewathai Public 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 fundamental drivers remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

AIRA Factoring and Chewathai Public Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AIRA Factoring and Chewathai Public

The main advantage of trading using opposite AIRA Factoring and Chewathai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Chewathai Public 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 Chewathai Public will offset losses from the drop in Chewathai Public's long position.
The idea behind AIRA Factoring Public and Chewathai 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.
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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