Correlation Between Asiabest Group and Bank of the
Can any of the company-specific risk be diversified away by investing in both Asiabest Group and Bank of the 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 Asiabest Group and Bank of the into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiabest Group International and Bank of the, you can compare the effects of market volatilities on Asiabest Group and Bank of the 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 Asiabest Group with a short position of Bank of the. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiabest Group and Bank of the.
Diversification Opportunities for Asiabest Group and Bank of the
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asiabest and Bank is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Asiabest Group International and Bank of the in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of the and Asiabest Group 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 Asiabest Group International are associated (or correlated) with Bank of the. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of the has no effect on the direction of Asiabest Group i.e., Asiabest Group and Bank of the go up and down completely randomly.
Pair Corralation between Asiabest Group and Bank of the
Assuming the 90 days trading horizon Asiabest Group International is expected to generate 3.9 times more return on investment than Bank of the. However, Asiabest Group is 3.9 times more volatile than Bank of the. It trades about 0.46 of its potential returns per unit of risk. Bank of the is currently generating about -0.12 per unit of risk. If you would invest 1,878 in Asiabest Group International on September 25, 2024 and sell it today you would earn a total of 742.00 from holding Asiabest Group International or generate 39.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 52.38% |
Values | Daily Returns |
Asiabest Group International vs. Bank of the
Performance |
Timeline |
Asiabest Group Inter |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
Bank of the |
Asiabest Group and Bank of the Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asiabest Group and Bank of the
The main advantage of trading using opposite Asiabest Group and Bank of the positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiabest Group position performs unexpectedly, Bank of the 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 Bank of the will offset losses from the drop in Bank of the's long position.Asiabest Group vs. SM Investments Corp | Asiabest Group vs. San Miguel Pure | Asiabest Group vs. Ayala Corp | Asiabest Group vs. Ayala Land |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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