Correlation Between Advanced Info and Twenty Four
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Twenty Four 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 Advanced Info and Twenty Four into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Info Service and Twenty Four Con Supply, you can compare the effects of market volatilities on Advanced Info and Twenty Four 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 Advanced Info with a short position of Twenty Four. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Twenty Four.
Diversification Opportunities for Advanced Info and Twenty Four
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advanced and Twenty is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Twenty Four Con Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twenty Four Con and Advanced Info 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 Advanced Info Service are associated (or correlated) with Twenty Four. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twenty Four Con has no effect on the direction of Advanced Info i.e., Advanced Info and Twenty Four go up and down completely randomly.
Pair Corralation between Advanced Info and Twenty Four
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.79 times more return on investment than Twenty Four. However, Advanced Info Service is 1.26 times less risky than Twenty Four. It trades about -0.1 of its potential returns per unit of risk. Twenty Four Con Supply is currently generating about -0.23 per unit of risk. If you would invest 29,600 in Advanced Info Service on October 4, 2024 and sell it today you would lose (900.00) from holding Advanced Info Service or give up 3.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Advanced Info Service vs. Twenty Four Con Supply
Performance |
Timeline |
Advanced Info Service |
Twenty Four Con |
Advanced Info and Twenty Four Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advanced Info and Twenty Four
The main advantage of trading using opposite Advanced Info and Twenty Four positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Twenty Four 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 Twenty Four will offset losses from the drop in Twenty Four's long position.Advanced Info vs. PTT Public | Advanced Info vs. Charoen Pokphand Foods | Advanced Info vs. SCB X Public | Advanced Info vs. CP ALL Public |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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