Correlation Between Asset Five and Frasers Property
Can any of the company-specific risk be diversified away by investing in both Asset Five and Frasers Property 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 Asset Five and Frasers Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asset Five Group and Frasers Property Public, you can compare the effects of market volatilities on Asset Five and Frasers Property 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 Asset Five with a short position of Frasers Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asset Five and Frasers Property.
Diversification Opportunities for Asset Five and Frasers Property
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asset and Frasers is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Asset Five Group and Frasers Property Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frasers Property Public and Asset Five 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 Asset Five Group are associated (or correlated) with Frasers Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frasers Property Public has no effect on the direction of Asset Five i.e., Asset Five and Frasers Property go up and down completely randomly.
Pair Corralation between Asset Five and Frasers Property
Assuming the 90 days horizon Asset Five Group is expected to under-perform the Frasers Property. In addition to that, Asset Five is 1.04 times more volatile than Frasers Property Public. It trades about -0.04 of its total potential returns per unit of risk. Frasers Property Public is currently generating about -0.03 per unit of volatility. If you would invest 1,269 in Frasers Property Public on September 26, 2024 and sell it today you would lose (69.00) from holding Frasers Property Public or give up 5.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Asset Five Group vs. Frasers Property Public
Performance |
Timeline |
Asset Five Group |
Frasers Property Public |
Asset Five and Frasers Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asset Five and Frasers Property
The main advantage of trading using opposite Asset Five and Frasers Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asset Five position performs unexpectedly, Frasers Property 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 Frasers Property will offset losses from the drop in Frasers Property's long position.Asset Five vs. AIRA Factoring Public | Asset Five vs. Applied DB Public | Asset Five vs. Asia Biomass Public | Asset Five vs. ASIA Capital Group |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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