Correlation Between Asian Sea and AddTech Hub

Can any of the company-specific risk be diversified away by investing in both Asian Sea and AddTech Hub 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 Asian Sea and AddTech Hub into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Asian Sea and AddTech Hub

-0.19

Correlation Coefficient

Asian Sea  AddTech Hub

Good diversification

The 3 months correlation between Asian and AddTech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Asian Sea and AddTech Hub Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AddTech Hub Public and Asian Sea 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 Asian Sea are associated (or correlated) with AddTech Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AddTech Hub Public has no effect on the direction of Asian Sea i.e., Asian Sea and AddTech Hub go up and down completely randomly.

Pair Corralation between Asian Sea and AddTech Hub

Assuming the 90 days trading horizon Asian Sea is expected to generate 0.47 times more return on investment than AddTech Hub. However, Asian Sea is 2.12 times less risky than AddTech Hub. It trades about 0.02 of its potential returns per unit of risk. AddTech Hub Public is currently generating about -0.05 per unit of risk. If you would invest  715.00  in Asian Sea on September 5, 2025 and sell it today you would earn a total of  5.00  from holding Asian Sea or generate 0.7% return on investment over 90 days.

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

Asian Sea  vs.  AddTech Hub Public

Asian Sea

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Asian Sea are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Asian Sea is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

AddTech Hub Public

Risk-Adjusted Performance

Weakest

Over the last 90 days AddTech Hub Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Asian Sea and AddTech Hub

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

The idea behind Asian Sea and AddTech Hub 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.