Correlation Between AAC TECHNOLOGHLDGADR and Parkson Retail
Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR and Parkson Retail 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 AAC TECHNOLOGHLDGADR and Parkson Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and Parkson Retail Group, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR and Parkson Retail 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 AAC TECHNOLOGHLDGADR with a short position of Parkson Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and Parkson Retail.
Diversification Opportunities for AAC TECHNOLOGHLDGADR and Parkson Retail
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between AAC and Parkson is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR and Parkson Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkson Retail Group and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR are associated (or correlated) with Parkson Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkson Retail Group has no effect on the direction of AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and Parkson Retail go up and down completely randomly.
Pair Corralation between AAC TECHNOLOGHLDGADR and Parkson Retail
Assuming the 90 days horizon AAC TECHNOLOGHLDGADR is expected to generate 0.65 times more return on investment than Parkson Retail. However, AAC TECHNOLOGHLDGADR is 1.54 times less risky than Parkson Retail. It trades about 0.11 of its potential returns per unit of risk. Parkson Retail Group is currently generating about 0.05 per unit of risk. If you would invest 370.00 in AAC TECHNOLOGHLDGADR on April 20, 2025 and sell it today you would earn a total of 78.00 from holding AAC TECHNOLOGHLDGADR or generate 21.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AAC TECHNOLOGHLDGADR vs. Parkson Retail Group
Performance |
Timeline |
AAC TECHNOLOGHLDGADR |
Parkson Retail Group |
AAC TECHNOLOGHLDGADR and Parkson Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AAC TECHNOLOGHLDGADR and Parkson Retail
The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and Parkson Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR position performs unexpectedly, Parkson Retail 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 Parkson Retail will offset losses from the drop in Parkson Retail's long position.AAC TECHNOLOGHLDGADR vs. Zijin Mining Group | AAC TECHNOLOGHLDGADR vs. Chalice Mining Limited | AAC TECHNOLOGHLDGADR vs. COMBA TELECOM SYST | AAC TECHNOLOGHLDGADR vs. Perseus Mining Limited |
Parkson Retail vs. AAC TECHNOLOGHLDGADR | Parkson Retail vs. Sunny Optical Technology | Parkson Retail vs. Amkor Technology | Parkson Retail vs. Addtech AB |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |