Correlation Between Property Perfect and Assetwise Public
Can any of the company-specific risk be diversified away by investing in both Property Perfect and Assetwise Public 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 Property Perfect and Assetwise Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Property Perfect Public and Assetwise Public, you can compare the effects of market volatilities on Property Perfect and Assetwise Public 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 Property Perfect with a short position of Assetwise Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Property Perfect and Assetwise Public.
Diversification Opportunities for Property Perfect and Assetwise Public
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Property and Assetwise is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Property Perfect Public and Assetwise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assetwise Public and Property Perfect 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 Property Perfect Public are associated (or correlated) with Assetwise Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assetwise Public has no effect on the direction of Property Perfect i.e., Property Perfect and Assetwise Public go up and down completely randomly.
Pair Corralation between Property Perfect and Assetwise Public
Assuming the 90 days horizon Property Perfect Public is expected to under-perform the Assetwise Public. In addition to that, Property Perfect is 5.45 times more volatile than Assetwise Public. It trades about -0.09 of its total potential returns per unit of risk. Assetwise Public is currently generating about 0.08 per unit of volatility. If you would invest 775.00 in Assetwise Public on September 24, 2024 and sell it today you would earn a total of 25.00 from holding Assetwise Public or generate 3.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Property Perfect Public vs. Assetwise Public
Performance |
Timeline |
Property Perfect Public |
Assetwise Public |
Property Perfect and Assetwise Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Property Perfect and Assetwise Public
The main advantage of trading using opposite Property Perfect and Assetwise Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Property Perfect position performs unexpectedly, Assetwise Public 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 Assetwise Public will offset losses from the drop in Assetwise Public's long position.Property Perfect vs. Bangkok Bank Public | Property Perfect vs. The Siam Cement | Property Perfect vs. PTT Public | Property Perfect vs. SCB X Public |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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