Correlation Between Bank of the and Asiabest Group
Can any of the company-specific risk be diversified away by investing in both Bank of the and Asiabest Group 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 Bank of the and Asiabest Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of the and Asiabest Group International, you can compare the effects of market volatilities on Bank of the and Asiabest Group 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 Bank of the with a short position of Asiabest Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of the and Asiabest Group.
Diversification Opportunities for Bank of the and Asiabest Group
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Asiabest is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank of the and Asiabest Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiabest Group Inter and Bank of the 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 Bank of the are associated (or correlated) with Asiabest Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiabest Group Inter has no effect on the direction of Bank of the i.e., Bank of the and Asiabest Group go up and down completely randomly.
Pair Corralation between Bank of the and Asiabest Group
Assuming the 90 days trading horizon Bank of the is expected to under-perform the Asiabest Group. But the stock apears to be less risky and, when comparing its historical volatility, Bank of the is 4.63 times less risky than Asiabest Group. The stock trades about 0.0 of its potential returns per unit of risk. The Asiabest Group International is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Asiabest Group International on September 24, 2024 and sell it today you would earn a total of 2,220 from holding Asiabest Group International or generate 555.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 62.2% |
Values | Daily Returns |
Bank of the vs. Asiabest Group International
Performance |
Timeline |
Bank of the |
Asiabest Group Inter |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
Bank of the and Asiabest Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of the and Asiabest Group
The main advantage of trading using opposite Bank of the and Asiabest Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of the position performs unexpectedly, Asiabest Group 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 Asiabest Group will offset losses from the drop in Asiabest Group's long position.Bank of the vs. Bank of Commerce | Bank of the vs. Easycall Communications Philippines | Bank of the vs. VistaREIT | Bank of the vs. Century Pacific Food |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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