Correlation Between CardieX and Asian Pay

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Can any of the company-specific risk be diversified away by investing in both CardieX and Asian Pay 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 CardieX and Asian Pay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CardieX Limited and Asian Pay Television, you can compare the effects of market volatilities on CardieX and Asian Pay 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 CardieX with a short position of Asian Pay. Check out your portfolio center. Please also check ongoing floating volatility patterns of CardieX and Asian Pay.

Diversification Opportunities for CardieX and Asian Pay

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between CardieX and Asian Pay

If you would invest  3.28  in Asian Pay Television on December 29, 2023 and sell it today you would earn a total of  1.72  from holding Asian Pay Television or generate 52.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

CardieX Limited  vs.  Asian Pay Television

 Performance 
       Timeline  
CardieX Limited 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days CardieX Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, CardieX is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
Asian Pay Television 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Asian Pay Television are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Asian Pay reported solid returns over the last few months and may actually be approaching a breakup point.

CardieX and Asian Pay Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CardieX and Asian Pay

The main advantage of trading using opposite CardieX and Asian Pay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CardieX position performs unexpectedly, Asian Pay 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 Asian Pay will offset losses from the drop in Asian Pay's long position.
The idea behind CardieX Limited and Asian Pay Television 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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