Correlation Between Dohome Public and ASIA Capital
Can any of the company-specific risk be diversified away by investing in both Dohome Public and ASIA Capital 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 Dohome Public and ASIA Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dohome Public and ASIA Capital Group, you can compare the effects of market volatilities on Dohome Public and ASIA Capital 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 Dohome Public with a short position of ASIA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dohome Public and ASIA Capital.
Diversification Opportunities for Dohome Public and ASIA Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dohome and ASIA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dohome Public and ASIA Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASIA Capital Group and Dohome Public 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 Dohome Public are associated (or correlated) with ASIA Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASIA Capital Group has no effect on the direction of Dohome Public i.e., Dohome Public and ASIA Capital go up and down completely randomly.
Pair Corralation between Dohome Public and ASIA Capital
Assuming the 90 days trading horizon Dohome Public is expected to generate 0.18 times more return on investment than ASIA Capital. However, Dohome Public is 5.54 times less risky than ASIA Capital. It trades about -0.1 of its potential returns per unit of risk. ASIA Capital Group is currently generating about -0.13 per unit of risk. If you would invest 995.00 in Dohome Public on October 24, 2024 and sell it today you would lose (140.00) from holding Dohome Public or give up 14.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dohome Public vs. ASIA Capital Group
Performance |
Timeline |
Dohome Public |
ASIA Capital Group |
Dohome Public and ASIA Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dohome Public and ASIA Capital
The main advantage of trading using opposite Dohome Public and ASIA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dohome Public position performs unexpectedly, ASIA Capital 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 ASIA Capital will offset losses from the drop in ASIA Capital's long position.Dohome Public vs. Com7 PCL | Dohome Public vs. Central Retail | Dohome Public vs. Siam Global House | Dohome Public vs. Home Product Center |
ASIA Capital vs. Thai Nakarin Hospital | ASIA Capital vs. Aikchol Hospital Public | ASIA Capital vs. Sri panwa Hospitality | ASIA Capital vs. Grande Hospitality Real |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |