Correlation Between Advanced Information and Thitikorn Public

Can any of the company-specific risk be diversified away by investing in both Advanced Information and Thitikorn 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 Advanced Information and Thitikorn Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Advanced Information and Thitikorn Public

-0.64

Correlation Coefficient

Advanced Information  Thitikorn Public

Excellent diversification

The 3 months correlation between Advanced and Thitikorn is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn Public and Advanced Information 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 Information Technology are associated (or correlated) with Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of Advanced Information i.e., Advanced Information and Thitikorn Public go up and down completely randomly.

Pair Corralation between Advanced Information and Thitikorn Public

Assuming the 90 days trading horizon Advanced Information Technology is expected to generate 1.2 times more return on investment than Thitikorn Public. However, Advanced Information is 1.2 times more volatile than Thitikorn Public. It trades about 0.11 of its potential returns per unit of risk. Thitikorn Public is currently generating about -0.2 per unit of risk. If you would invest  406.00  in Advanced Information Technology on December 22, 2024 and sell it today you would earn a total of  52.00  from holding Advanced Information Technology or generate 12.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Advanced Information Technolog  vs.  Thitikorn Public

Advanced Information

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Information Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Advanced Information disclosed solid returns over the last few months and may actually be approaching a breakup point.

Thitikorn Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thitikorn Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Advanced Information and Thitikorn Public

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

The idea behind Advanced Information Technology and Thitikorn 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.