Correlation Between Crown Asia and IRemit

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

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

Diversification Opportunities for Crown Asia and IRemit

0.28

Correlation Coefficient

Crown Asia  IRemit

Modest diversification

The 3 months correlation between Crown and IRemit is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Crown Asia Chemicals and IRemit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRemit Inc and Crown Asia 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 Crown Asia Chemicals are associated (or correlated) with IRemit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRemit Inc has no effect on the direction of Crown Asia i.e., Crown Asia and IRemit go up and down completely randomly.

Pair Corralation between Crown Asia and IRemit

If you would invest (100.00) in IRemit Inc on October 25, 2024 and sell it today you would earn a total of  100.00  from holding IRemit Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Crown Asia Chemicals  vs.  IRemit Inc

Crown Asia Chemicals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crown Asia Chemicals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

IRemit Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IRemit Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, IRemit is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Crown Asia and IRemit

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

The idea behind Crown Asia Chemicals and IRemit Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.