Correlation Between Advanced Info and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Chularat Hospital 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 Chularat Hospital 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 Chularat Hospital Public, you can compare the effects of market volatilities on Advanced Info and Chularat Hospital 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 Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Chularat Hospital.
Diversification Opportunities for Advanced Info and Chularat Hospital
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advanced and Chularat is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital 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 Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of Advanced Info i.e., Advanced Info and Chularat Hospital go up and down completely randomly.
Pair Corralation between Advanced Info and Chularat Hospital
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.7 times more return on investment than Chularat Hospital. However, Advanced Info Service is 1.42 times less risky than Chularat Hospital. It trades about 0.08 of its potential returns per unit of risk. Chularat Hospital Public is currently generating about -0.01 per unit of risk. If you would invest 20,428 in Advanced Info Service on August 31, 2024 and sell it today you would earn a total of 8,072 from holding Advanced Info Service or generate 39.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Chularat Hospital Public
Performance |
| Timeline |
| Advanced Info Service |
| Chularat Hospital Public |
Advanced Info and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Chularat Hospital
The main advantage of trading using opposite Advanced Info and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Chularat Hospital 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 Chularat Hospital will offset losses from the drop in Chularat Hospital'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 |
| Chularat Hospital vs. AP Public | Chularat Hospital vs. Advanced Information Technology | Chularat Hospital vs. AJ Plast Public | Chularat Hospital vs. Berli Jucker 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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