Correlation Between Grande Asset and AddTech Hub
Can any of the company-specific risk be diversified away by investing in both Grande Asset and AddTech Hub 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 Grande Asset and AddTech Hub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Asset Hotels and AddTech Hub Public, you can compare the effects of market volatilities on Grande Asset and AddTech Hub 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 Grande Asset with a short position of AddTech Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Asset and AddTech Hub.
Diversification Opportunities for Grande Asset and AddTech Hub
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grande and AddTech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Grande Asset Hotels and AddTech Hub Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AddTech Hub Public and Grande Asset 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 Grande Asset Hotels are associated (or correlated) with AddTech Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AddTech Hub Public has no effect on the direction of Grande Asset i.e., Grande Asset and AddTech Hub go up and down completely randomly.
Pair Corralation between Grande Asset and AddTech Hub
Assuming the 90 days trading horizon Grande Asset Hotels is expected to under-perform the AddTech Hub. In addition to that, Grande Asset is 4.46 times more volatile than AddTech Hub Public. It trades about -0.07 of its total potential returns per unit of risk. AddTech Hub Public is currently generating about 0.07 per unit of volatility. If you would invest 481.00 in AddTech Hub Public on September 26, 2024 and sell it today you would earn a total of 29.00 from holding AddTech Hub Public or generate 6.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grande Asset Hotels vs. AddTech Hub Public
Performance |
Timeline |
Grande Asset Hotels |
AddTech Hub Public |
Grande Asset and AddTech Hub Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grande Asset and AddTech Hub
The main advantage of trading using opposite Grande Asset and AddTech Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Asset position performs unexpectedly, AddTech Hub 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 AddTech Hub will offset losses from the drop in AddTech Hub's long position.Grande Asset vs. Firetrade Engineering Public | Grande Asset vs. Bank of Ayudhya | Grande Asset vs. Thai Credit Pcl | Grande Asset vs. Kasikornbank Public |
AddTech Hub vs. Interlink Communication Public | AddTech Hub vs. Aqua Public | AddTech Hub vs. BEC World Public | AddTech Hub vs. Grande Asset Hotels |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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