Correlation Between ABSOLUTE CLEAN and Bank of Ayudhya
Can any of the company-specific risk be diversified away by investing in both ABSOLUTE CLEAN and Bank of Ayudhya 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 ABSOLUTE CLEAN and Bank of Ayudhya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABSOLUTE CLEAN ENERGY and Bank of Ayudhya, you can compare the effects of market volatilities on ABSOLUTE CLEAN and Bank of Ayudhya 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 ABSOLUTE CLEAN with a short position of Bank of Ayudhya. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSOLUTE CLEAN and Bank of Ayudhya.
Diversification Opportunities for ABSOLUTE CLEAN and Bank of Ayudhya
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ABSOLUTE and Bank is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ABSOLUTE CLEAN ENERGY and Bank of Ayudhya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Ayudhya and ABSOLUTE CLEAN 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 ABSOLUTE CLEAN ENERGY are associated (or correlated) with Bank of Ayudhya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Ayudhya has no effect on the direction of ABSOLUTE CLEAN i.e., ABSOLUTE CLEAN and Bank of Ayudhya go up and down completely randomly.
Pair Corralation between ABSOLUTE CLEAN and Bank of Ayudhya
Assuming the 90 days trading horizon ABSOLUTE CLEAN ENERGY is expected to under-perform the Bank of Ayudhya. In addition to that, ABSOLUTE CLEAN is 1.68 times more volatile than Bank of Ayudhya. It trades about -0.08 of its total potential returns per unit of risk. Bank of Ayudhya is currently generating about 0.0 per unit of volatility. If you would invest 2,567 in Bank of Ayudhya on August 25, 2024 and sell it today you would lose (67.00) from holding Bank of Ayudhya or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.45% |
| Values | Daily Returns |
ABSOLUTE CLEAN ENERGY vs. Bank of Ayudhya
Performance |
| Timeline |
| ABSOLUTE CLEAN ENERGY |
| Bank of Ayudhya |
ABSOLUTE CLEAN and Bank of Ayudhya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSOLUTE CLEAN and Bank of Ayudhya
The main advantage of trading using opposite ABSOLUTE CLEAN and Bank of Ayudhya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSOLUTE CLEAN position performs unexpectedly, Bank of Ayudhya 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 Bank of Ayudhya will offset losses from the drop in Bank of Ayudhya's long position.| ABSOLUTE CLEAN vs. BCPG Public | ABSOLUTE CLEAN vs. CK Power Public | ABSOLUTE CLEAN vs. TPI Polene Power | ABSOLUTE CLEAN vs. Earth Tech Environment |
| Bank of Ayudhya vs. Thai Energy Storage | Bank of Ayudhya vs. Royal Orchid Hotel | Bank of Ayudhya vs. Grand Canal Land | Bank of Ayudhya vs. PRG 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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