Correlation Between Generation Asia and All Things

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

By analyzing existing cross correlation between Generation Asia I and All Things Mobile, you can compare the effects of market volatilities on Generation Asia and All Things 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 Generation Asia with a short position of All Things. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Asia and All Things.

Diversification Opportunities for Generation Asia and All Things

-0.33

Correlation Coefficient

Generation Asia  All Things

Very good diversification

The 3 months correlation between Generation and All is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Generation Asia I and All Things Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Things Mobile and Generation 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 Generation Asia I are associated (or correlated) with All Things. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Things Mobile has no effect on the direction of Generation Asia i.e., Generation Asia and All Things go up and down completely randomly.

Pair Corralation between Generation Asia and All Things

If you would invest  1,140  in Generation Asia I on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Generation Asia I or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Generation Asia I  vs.  All Things Mobile

Generation Asia I

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Generation Asia I has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Generation Asia is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

All Things Mobile

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in All Things Mobile are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating primary indicators, All Things demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Generation Asia and All Things

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

The idea behind Generation Asia I and All Things Mobile 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.