Correlation Between Ascendas India and Bridgemarq Real

Can any of the company-specific risk be diversified away by investing in both Ascendas India and Bridgemarq Real 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 Ascendas India and Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ascendas India Trust and Bridgemarq Real Estate, you can compare the effects of market volatilities on Ascendas India and Bridgemarq Real 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 Ascendas India with a short position of Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas India and Bridgemarq Real.

Diversification Opportunities for Ascendas India and Bridgemarq Real

-0.56

Correlation Coefficient

Ascendas India  Bridgemarq Real

Excellent diversification

The 3 months correlation between Ascendas and Bridgemarq is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas India Trust and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate and Ascendas India 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 Ascendas India Trust are associated (or correlated) with Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Ascendas India i.e., Ascendas India and Bridgemarq Real go up and down completely randomly.

Pair Corralation between Ascendas India and Bridgemarq Real

Assuming the 90 days horizon Ascendas India Trust is expected to under-perform the Bridgemarq Real. In addition to that, Ascendas India is 1.49 times more volatile than Bridgemarq Real Estate. It trades about -0.06 of its total potential returns per unit of risk. Bridgemarq Real Estate is currently generating about 0.08 per unit of volatility. If you would invest  988.00  in Bridgemarq Real Estate on September 14, 2024 and sell it today you would earn a total of  58.00  from holding Bridgemarq Real Estate or generate 5.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.63%
Values	Daily Returns

Ascendas India Trust  vs.  Bridgemarq Real Estate

Ascendas India Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ascendas India Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Bridgemarq Real Estate

Risk-Adjusted Performance

6 of 100

Modest

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

Pair Trading with Ascendas India and Bridgemarq Real

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

The idea behind Ascendas India Trust and Bridgemarq Real Estate 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.