Correlation Between Siamese Asset and Assetwise Public

Can any of the company-specific risk be diversified away by investing in both Siamese Asset 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 Siamese Asset and Assetwise Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siamese Asset Public and Assetwise Public, you can compare the effects of market volatilities on Siamese Asset 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 Siamese Asset with a short position of Assetwise Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamese Asset and Assetwise Public.

Diversification Opportunities for Siamese Asset and Assetwise Public

-0.61

Correlation Coefficient

Siamese Asset  Assetwise Public

Excellent diversification

The 3 months correlation between Siamese and Assetwise is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Siamese Asset Public and Assetwise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assetwise Public and Siamese Asset 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 Siamese Asset 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 Siamese Asset i.e., Siamese Asset and Assetwise Public go up and down completely randomly.

Pair Corralation between Siamese Asset and Assetwise Public

Assuming the 90 days horizon Siamese Asset Public is expected to generate 2.1 times more return on investment than Assetwise Public. However, Siamese Asset is 2.1 times more volatile than Assetwise Public. It trades about 0.04 of its potential returns per unit of risk. Assetwise Public is currently generating about -0.07 per unit of risk. If you would invest  745.00  in Siamese Asset Public on September 24, 2024 and sell it today you would earn a total of  5.00  from holding Siamese Asset Public or generate 0.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Siamese Asset Public  vs.  Assetwise Public

Siamese Asset Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siamese Asset Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Siamese Asset is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Assetwise Public

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Assetwise Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Assetwise Public is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Siamese Asset and Assetwise Public

The main advantage of trading using opposite Siamese Asset and Assetwise Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamese Asset 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.

The idea behind Siamese Asset Public and Assetwise Public 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.