Correlation Between Asian Alliance and Advanced Info
Can any of the company-specific risk be diversified away by investing in both Asian Alliance and Advanced Info 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 Asian Alliance and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asian Alliance International and Advanced Info Service, you can compare the effects of market volatilities on Asian Alliance and Advanced Info 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 Asian Alliance with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Alliance and Advanced Info.
Diversification Opportunities for Asian Alliance and Advanced Info
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asian and Advanced is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Asian Alliance International and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and Asian Alliance 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 Asian Alliance International are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of Asian Alliance i.e., Asian Alliance and Advanced Info go up and down completely randomly.
Pair Corralation between Asian Alliance and Advanced Info
Assuming the 90 days trading horizon Asian Alliance is expected to generate 17.52 times less return on investment than Advanced Info. In addition to that, Asian Alliance is 2.48 times more volatile than Advanced Info Service. It trades about 0.0 of its total potential returns per unit of risk. Advanced Info Service is currently generating about 0.1 per unit of volatility. If you would invest 17,202 in Advanced Info Service on September 4, 2024 and sell it today you would earn a total of 11,398 from holding Advanced Info Service or generate 66.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Alliance International vs. Advanced Info Service
Performance |
| Timeline |
| Asian Alliance Inter |
| Advanced Info Service |
Asian Alliance and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Alliance and Advanced Info
The main advantage of trading using opposite Asian Alliance and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Alliance position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info's long position.| Asian Alliance vs. Kingsmen CMTI Public | Asian Alliance vs. Hydrotek Public | Asian Alliance vs. Karmarts Public | Asian Alliance vs. KC Metalsheet Public |
| Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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