Correlation Between International Network and Asia Medical

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

By analyzing existing cross correlation between International Network System and Asia Medical Agricultural, you can compare the effects of market volatilities on International Network and Asia Medical 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 International Network with a short position of Asia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Network and Asia Medical.

Diversification Opportunities for International Network and Asia Medical

0.0

Correlation Coefficient

International Network  Asia Medical

Pay attention - limited upside

The 3 months correlation between International and Asia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Network System and Asia Medical Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Medical Agricultural and International Network 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 International Network System are associated (or correlated) with Asia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Medical Agricultural has no effect on the direction of International Network i.e., International Network and Asia Medical go up and down completely randomly.

Pair Corralation between International Network and Asia Medical

If you would invest  0.00  in International Network System on October 10, 2024 and sell it today you would earn a total of  0.00  from holding International Network System or generate 0.0% return on investment over 90 days.

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

International Network System  vs.  Asia Medical Agricultural

International Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Network System has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, International Network is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Asia Medical Agricultural

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asia Medical Agricultural has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Asia Medical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with International Network and Asia Medical

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

The idea behind International Network System and Asia Medical Agricultural 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.