Correlation Between ASIA Capital and Arrow Syndicate

Can any of the company-specific risk be diversified away by investing in both ASIA Capital and Arrow Syndicate 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 ASIA Capital and Arrow Syndicate into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for ASIA Capital and Arrow Syndicate

0.0

Correlation Coefficient

ASIA Capital  Arrow Syndicate

Pay attention - limited upside

The 3 months correlation between ASIA and Arrow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASIA Capital Group and Arrow Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Syndicate Public and ASIA Capital 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 ASIA Capital Group are associated (or correlated) with Arrow Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Syndicate Public has no effect on the direction of ASIA Capital i.e., ASIA Capital and Arrow Syndicate go up and down completely randomly.

Pair Corralation between ASIA Capital and Arrow Syndicate

If you would invest  605.00  in Arrow Syndicate Public on February 14, 2024 and sell it today you would earn a total of  5.00  from holding Arrow Syndicate Public or generate 0.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASIA Capital Group  vs.  Arrow Syndicate Public

ASIA Capital Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASIA Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, ASIA Capital is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Arrow Syndicate Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Arrow Syndicate Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Arrow Syndicate is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ASIA Capital and Arrow Syndicate

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

The idea behind ASIA Capital Group and Arrow Syndicate 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 Stocks Directory module to find actively traded stocks across global markets.