Correlation Between Asia Sermkij and Newcity Public
Can any of the company-specific risk be diversified away by investing in both Asia Sermkij and Newcity 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 Asia Sermkij and Newcity Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Sermkij Leasing and Newcity Public, you can compare the effects of market volatilities on Asia Sermkij and Newcity 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 Asia Sermkij with a short position of Newcity Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Sermkij and Newcity Public.
Diversification Opportunities for Asia Sermkij and Newcity Public
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Newcity is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Asia Sermkij Leasing and Newcity Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcity Public and Asia Sermkij 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 Sermkij Leasing are associated (or correlated) with Newcity Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcity Public has no effect on the direction of Asia Sermkij i.e., Asia Sermkij and Newcity Public go up and down completely randomly.
Pair Corralation between Asia Sermkij and Newcity Public
Assuming the 90 days trading horizon Asia Sermkij Leasing is expected to under-perform the Newcity Public. But the stock apears to be less risky and, when comparing its historical volatility, Asia Sermkij Leasing is 3.15 times less risky than Newcity Public. The stock trades about -0.11 of its potential returns per unit of risk. The Newcity Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Newcity Public on December 4, 2024 and sell it today you would earn a total of 82.00 from holding Newcity Public or generate 59.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Asia Sermkij Leasing vs. Newcity Public
Performance |
Timeline |
Asia Sermkij Leasing |
Newcity Public |
Asia Sermkij and Newcity Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asia Sermkij and Newcity Public
The main advantage of trading using opposite Asia Sermkij and Newcity Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Sermkij position performs unexpectedly, Newcity 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 Newcity Public will offset losses from the drop in Newcity Public's long position.Asia Sermkij vs. AP Public | Asia Sermkij vs. Kiatnakin Phatra Bank | Asia Sermkij vs. TISCO Financial Group | Asia Sermkij vs. Carabao Group Public |
Newcity Public vs. Ocean Glass Public | Newcity Public vs. OCC Public | Newcity Public vs. Wattana Karnpaet Public | Newcity Public vs. Peoples Garment Public |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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