Correlation Between FRASERS PROPERTY and AEON MALL

Can any of the company-specific risk be diversified away by investing in both FRASERS PROPERTY and AEON MALL 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 FRASERS PROPERTY and AEON MALL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FRASERS PROPERTY and AEON MALL LTD, you can compare the effects of market volatilities on FRASERS PROPERTY and AEON MALL 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 FRASERS PROPERTY with a short position of AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRASERS PROPERTY and AEON MALL.

Diversification Opportunities for FRASERS PROPERTY and AEON MALL

-0.4

Correlation Coefficient

FRASERS PROPERTY  AEON MALL

Very good diversification

The 3 months correlation between FRASERS and AEON is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding FRASERS PROPERTY and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL LTD and FRASERS PROPERTY 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 FRASERS PROPERTY are associated (or correlated) with AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of FRASERS PROPERTY i.e., FRASERS PROPERTY and AEON MALL go up and down completely randomly.

Pair Corralation between FRASERS PROPERTY and AEON MALL

Assuming the 90 days horizon FRASERS PROPERTY is expected to generate 1.0 times more return on investment than AEON MALL. However, FRASERS PROPERTY is 1.0 times more volatile than AEON MALL LTD. It trades about 0.09 of its potential returns per unit of risk. AEON MALL LTD is currently generating about -0.04 per unit of risk. If you would invest  59.00  in FRASERS PROPERTY on September 23, 2024 and sell it today you would earn a total of  4.00  from holding FRASERS PROPERTY or generate 6.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

FRASERS PROPERTY  vs.  AEON MALL LTD

FRASERS PROPERTY

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FRASERS PROPERTY are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRASERS PROPERTY may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AEON MALL LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AEON MALL LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AEON MALL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FRASERS PROPERTY and AEON MALL

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

The idea behind FRASERS PROPERTY and AEON MALL LTD 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.