Correlation Between Advanced Info and Asia Fiber
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Asia Fiber 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 Info and Asia Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Info Service and Asia Fiber Public, you can compare the effects of market volatilities on Advanced Info and Asia Fiber 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 Info with a short position of Asia Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Asia Fiber.
Diversification Opportunities for Advanced Info and Asia Fiber
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advanced and Asia is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Asia Fiber Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Fiber Public and Advanced Info 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 Info Service are associated (or correlated) with Asia Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Fiber Public has no effect on the direction of Advanced Info i.e., Advanced Info and Asia Fiber go up and down completely randomly.
Pair Corralation between Advanced Info and Asia Fiber
Assuming the 90 days trading horizon Advanced Info is expected to generate 17.91 times less return on investment than Asia Fiber. But when comparing it to its historical volatility, Advanced Info Service is 36.17 times less risky than Asia Fiber. It trades about 0.07 of its potential returns per unit of risk. Asia Fiber Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Asia Fiber Public on November 27, 2024 and sell it today you would lose (406.00) from holding Asia Fiber Public or give up 50.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Asia Fiber Public
Performance |
| Timeline |
| Advanced Info Service |
| Asia Fiber Public |
Advanced Info and Asia Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Asia Fiber
The main advantage of trading using opposite Advanced Info and Asia Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Asia Fiber 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 Asia Fiber will offset losses from the drop in Asia Fiber's long position.| Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank Public |
| Asia Fiber vs. AJ Plast Public | Asia Fiber vs. Aikchol Hospital Public | Asia Fiber vs. Boutique Newcity Public | Asia Fiber vs. Allianz Ayudhya Capital |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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