Correlation Between Versatile Creative and Asian Pac
Can any of the company-specific risk be diversified away by investing in both Versatile Creative and Asian Pac 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 Versatile Creative and Asian Pac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Versatile Creative Bhd and Asian Pac Holdings, you can compare the effects of market volatilities on Versatile Creative and Asian Pac 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 Versatile Creative with a short position of Asian Pac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Versatile Creative and Asian Pac.
Diversification Opportunities for Versatile Creative and Asian Pac
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Versatile and Asian is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Versatile Creative Bhd and Asian Pac Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Pac Holdings and Versatile Creative 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 Versatile Creative Bhd are associated (or correlated) with Asian Pac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Pac Holdings has no effect on the direction of Versatile Creative i.e., Versatile Creative and Asian Pac go up and down completely randomly.
Pair Corralation between Versatile Creative and Asian Pac
Assuming the 90 days trading horizon Versatile Creative Bhd is expected to generate 0.55 times more return on investment than Asian Pac. However, Versatile Creative Bhd is 1.83 times less risky than Asian Pac. It trades about 0.09 of its potential returns per unit of risk. Asian Pac Holdings is currently generating about -0.03 per unit of risk. If you would invest 64.00 in Versatile Creative Bhd on September 25, 2024 and sell it today you would earn a total of 6.00 from holding Versatile Creative Bhd or generate 9.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Versatile Creative Bhd vs. Asian Pac Holdings
Performance |
Timeline |
Versatile Creative Bhd |
Asian Pac Holdings |
Versatile Creative and Asian Pac Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Versatile Creative and Asian Pac
The main advantage of trading using opposite Versatile Creative and Asian Pac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Versatile Creative position performs unexpectedly, Asian Pac 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 Asian Pac will offset losses from the drop in Asian Pac's long position.Versatile Creative vs. Senheng New Retail | Versatile Creative vs. Apex Healthcare Bhd | Versatile Creative vs. Cengild Medical Berhad | Versatile Creative vs. Berjaya Food Bhd |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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