Correlation Between Advanced Info and Amata Public
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Amata Public 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 Amata Public 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 Amata Public, you can compare the effects of market volatilities on Advanced Info and Amata Public 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 Amata Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Amata Public.
Diversification Opportunities for Advanced Info and Amata Public
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Amata is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Amata Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata 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 Amata Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Public has no effect on the direction of Advanced Info i.e., Advanced Info and Amata Public go up and down completely randomly.
Pair Corralation between Advanced Info and Amata Public
Assuming the 90 days trading horizon Advanced Info is expected to generate 2.54 times less return on investment than Amata Public. But when comparing it to its historical volatility, Advanced Info Service is 2.13 times less risky than Amata Public. It trades about 0.17 of its potential returns per unit of risk. Amata Public is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,700 in Amata Public on August 25, 2024 and sell it today you would earn a total of 350.00 from holding Amata Public or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Amata Public
Performance |
| Timeline |
| Advanced Info Service |
| Amata Public |
Advanced Info and Amata Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Amata Public
The main advantage of trading using opposite Advanced Info and Amata Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Amata Public 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 Amata Public will offset losses from the drop in Amata Public'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 |
| Amata Public vs. WHA Public | Amata Public vs. Banpu Public | Amata Public vs. Advanced Info Service | Amata Public vs. Land and Houses |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |