Correlation Between 3BB INTERNET and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both 3BB INTERNET and AAPICO Hitech 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 3BB INTERNET and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3BB INTERNET INFRASTRUCTURE and AAPICO Hitech Public, you can compare the effects of market volatilities on 3BB INTERNET and AAPICO Hitech 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 3BB INTERNET with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3BB INTERNET and AAPICO Hitech.
Diversification Opportunities for 3BB INTERNET and AAPICO Hitech
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 3BB and AAPICO is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding 3BB INTERNET INFRASTRUCTURE and AAPICO Hitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPICO Hitech Public and 3BB INTERNET 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 3BB INTERNET INFRASTRUCTURE are associated (or correlated) with AAPICO Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPICO Hitech Public has no effect on the direction of 3BB INTERNET i.e., 3BB INTERNET and AAPICO Hitech go up and down completely randomly.
Pair Corralation between 3BB INTERNET and AAPICO Hitech
Assuming the 90 days trading horizon 3BB INTERNET INFRASTRUCTURE is expected to generate 0.53 times more return on investment than AAPICO Hitech. However, 3BB INTERNET INFRASTRUCTURE is 1.9 times less risky than AAPICO Hitech. It trades about -0.03 of its potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.03 per unit of risk. If you would invest 671.00 in 3BB INTERNET INFRASTRUCTURE on August 31, 2024 and sell it today you would lose (116.00) from holding 3BB INTERNET INFRASTRUCTURE or give up 17.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
3BB INTERNET INFRASTRUCTURE vs. AAPICO Hitech Public
Performance |
| Timeline |
| 3BB INTERNET INFRAST |
| AAPICO Hitech Public |
3BB INTERNET and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3BB INTERNET and AAPICO Hitech
The main advantage of trading using opposite 3BB INTERNET and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3BB INTERNET position performs unexpectedly, AAPICO Hitech 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 AAPICO Hitech will offset losses from the drop in AAPICO Hitech's long position.| 3BB INTERNET vs. AP Public | 3BB INTERNET vs. TRC Construction Public | 3BB INTERNET vs. Bangkok Expressway and | 3BB INTERNET vs. Lohakit Metal Public |
| AAPICO Hitech vs. TRC Construction Public | AAPICO Hitech vs. Bangkok Expressway and | AAPICO Hitech vs. Lohakit Metal Public | AAPICO Hitech vs. Gunkul Engineering Public |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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