Correlation Between Asia Fiber and AP Public
Can any of the company-specific risk be diversified away by investing in both Asia Fiber and AP Public 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 Asia Fiber and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Fiber Public and AP Public, you can compare the effects of market volatilities on Asia Fiber and AP Public 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 Asia Fiber with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Fiber and AP Public.
Diversification Opportunities for Asia Fiber and AP Public
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and AP Public is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Asia Fiber Public and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Asia Fiber 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 Asia Fiber Public are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Asia Fiber i.e., Asia Fiber and AP Public go up and down completely randomly.
Pair Corralation between Asia Fiber and AP Public
Assuming the 90 days trading horizon Asia Fiber Public is expected to under-perform the AP Public. But the stock apears to be less risky and, when comparing its historical volatility, Asia Fiber Public is 1.14 times less risky than AP Public. The stock trades about -0.14 of its potential returns per unit of risk. The AP Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 870.00 in AP Public on November 30, 2024 and sell it today you would earn a total of 25.00 from holding AP Public or generate 2.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.33% |
Values | Daily Returns |
Asia Fiber Public vs. AP Public
Performance |
Timeline |
Asia Fiber Public |
AP Public |
Asia Fiber and AP Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asia Fiber and AP Public
The main advantage of trading using opposite Asia Fiber and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Fiber position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.Asia Fiber vs. AJ Plast Public | Asia Fiber vs. Aikchol Hospital Public | Asia Fiber vs. Boutique Newcity Public | Asia Fiber vs. Allianz Ayudhya Capital |
AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |