Correlation Between Advanced Info and TPC Power
Can any of the company-specific risk be diversified away by investing in both Advanced Info and TPC Power 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 TPC Power 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 TPC Power Holding, you can compare the effects of market volatilities on Advanced Info and TPC Power 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 TPC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and TPC Power.
Diversification Opportunities for Advanced Info and TPC Power
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and TPC is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and TPC Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPC Power Holding 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 TPC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPC Power Holding has no effect on the direction of Advanced Info i.e., Advanced Info and TPC Power go up and down completely randomly.
Pair Corralation between Advanced Info and TPC Power
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.61 times more return on investment than TPC Power. However, Advanced Info Service is 1.63 times less risky than TPC Power. It trades about 0.08 of its potential returns per unit of risk. TPC Power Holding is currently generating about -0.02 per unit of risk. If you would invest 17,940 in Advanced Info Service on September 23, 2024 and sell it today you would earn a total of 9,460 from holding Advanced Info Service or generate 52.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Advanced Info Service vs. TPC Power Holding
Performance |
Timeline |
Advanced Info Service |
TPC Power Holding |
Advanced Info and TPC Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advanced Info and TPC Power
The main advantage of trading using opposite Advanced Info and TPC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, TPC Power 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 TPC Power will offset losses from the drop in TPC Power's long position.Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank Public |
TPC Power vs. WHA Public | TPC Power vs. Energy Absolute Public | TPC Power vs. TPI Polene Public | TPC Power vs. Thai Solar Energy |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Stocks Directory Find actively traded stocks across global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |