Correlation Between Asia Pptys and Bridgemarq Real

Can any of the company-specific risk be diversified away by investing in both Asia Pptys and Bridgemarq Real 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 Pptys and Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asia Pptys and Bridgemarq Real Estate, you can compare the effects of market volatilities on Asia Pptys and Bridgemarq Real 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 Pptys with a short position of Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pptys and Bridgemarq Real.

Diversification Opportunities for Asia Pptys and Bridgemarq Real

0.77

Correlation Coefficient

Asia Pptys  Bridgemarq Real

Poor diversification

The 3 months correlation between Asia and Bridgemarq is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pptys and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate and Asia Pptys 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 Pptys are associated (or correlated) with Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Asia Pptys i.e., Asia Pptys and Bridgemarq Real go up and down completely randomly.

Pair Corralation between Asia Pptys and Bridgemarq Real

Given the investment horizon of 90 days Asia Pptys is expected to generate 13.72 times more return on investment than Bridgemarq Real. However, Asia Pptys is 13.72 times more volatile than Bridgemarq Real Estate. It trades about 0.06 of its potential returns per unit of risk. Bridgemarq Real Estate is currently generating about -0.01 per unit of risk. If you would invest  4.97  in Asia Pptys on December 29, 2024 and sell it today you would lose (3.77) from holding Asia Pptys or give up 75.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	87.1%
Values	Daily Returns

Asia Pptys  vs.  Bridgemarq Real Estate

Asia Pptys

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Asia Pptys are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Asia Pptys showed solid returns over the last few months and may actually be approaching a breakup point.

Bridgemarq Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bridgemarq Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bridgemarq Real is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Asia Pptys and Bridgemarq Real

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

The idea behind Asia Pptys and Bridgemarq Real Estate 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.