Correlation Between Advanced Info and Ama Marine
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Ama Marine 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 Ama Marine 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 Ama Marine Public, you can compare the effects of market volatilities on Advanced Info and Ama Marine 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 Ama Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Ama Marine.
Diversification Opportunities for Advanced Info and Ama Marine
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and Ama is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Ama Marine Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ama Marine 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 Ama Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ama Marine Public has no effect on the direction of Advanced Info i.e., Advanced Info and Ama Marine go up and down completely randomly.
Pair Corralation between Advanced Info and Ama Marine
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 1.39 times more return on investment than Ama Marine. However, Advanced Info is 1.39 times more volatile than Ama Marine Public. It trades about 0.13 of its potential returns per unit of risk. Ama Marine Public is currently generating about -0.19 per unit of risk. If you would invest 27,500 in Advanced Info Service on September 1, 2024 and sell it today you would earn a total of 1,000.00 from holding Advanced Info Service or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Advanced Info Service vs. Ama Marine Public
Performance |
| Timeline |
| Advanced Info Service |
| Ama Marine Public |
Advanced Info and Ama Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Ama Marine
The main advantage of trading using opposite Advanced Info and Ama Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Ama Marine 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 Ama Marine will offset losses from the drop in Ama Marine'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 |
| Ama Marine vs. Arrow Syndicate Public | Ama Marine vs. After You Public | Ama Marine vs. Union Auction Public | Ama Marine vs. Akkhie Prakarn 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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