Correlation Between Professional Waste and Asia Medical

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Can any of the company-specific risk be diversified away by investing in both Professional Waste 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 Professional Waste and Asia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Professional Waste Technology and Asia Medical Agricultural, you can compare the effects of market volatilities on Professional Waste 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 Professional Waste with a short position of Asia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Professional Waste and Asia Medical.

Diversification Opportunities for Professional Waste and Asia Medical

ProfessionalAsiaDiversified AwayProfessionalAsiaDiversified Away100%
0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Professional and Asia is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Professional Waste Technology 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 Professional Waste 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 Professional Waste Technology 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 Professional Waste i.e., Professional Waste and Asia Medical go up and down completely randomly.

Pair Corralation between Professional Waste and Asia Medical

Assuming the 90 days trading horizon Professional Waste Technology is expected to under-perform the Asia Medical. In addition to that, Professional Waste is 9.09 times more volatile than Asia Medical Agricultural. It trades about -0.06 of its total potential returns per unit of risk. Asia Medical Agricultural is currently generating about -0.01 per unit of volatility. If you would invest  130.00  in Asia Medical Agricultural on October 21, 2024 and sell it today you would lose (4.00) from holding Asia Medical Agricultural or give up 3.08% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy90.16%
ValuesDaily Returns

Professional Waste Technology  vs.  Asia Medical Agricultural

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -80-60-40-200
JavaScript chart by amCharts 3.21.15PRO AMARC
       Timeline  
Professional Waste 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Professional Waste Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan
Asia Medical Agricultural 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.251.31.351.41.451.51.55

Professional Waste and Asia Medical Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-47.68-35.71-23.74-11.770.011.9724.1436.3248.49 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15PRO AMARC
       Returns  

Pair Trading with Professional Waste and Asia Medical

The main advantage of trading using opposite Professional Waste and Asia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Professional Waste 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 Professional Waste Technology 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.
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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