Correlation Between Advanced Info and Central Pattana
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Central Pattana 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 Central Pattana 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 Central Pattana Public, you can compare the effects of market volatilities on Advanced Info and Central Pattana 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 Central Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Central Pattana.
Diversification Opportunities for Advanced Info and Central Pattana
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Advanced and Central is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Central Pattana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Pattana 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 Central Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Pattana Public has no effect on the direction of Advanced Info i.e., Advanced Info and Central Pattana go up and down completely randomly.
Pair Corralation between Advanced Info and Central Pattana
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.88 times more return on investment than Central Pattana. However, Advanced Info Service is 1.14 times less risky than Central Pattana. It trades about 0.2 of its potential returns per unit of risk. Central Pattana Public is currently generating about 0.03 per unit of risk. If you would invest 19,890 in Advanced Info Service on August 29, 2024 and sell it today you would earn a total of 8,210 from holding Advanced Info Service or generate 41.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Central Pattana Public
Performance |
| Timeline |
| Advanced Info Service |
| Central Pattana Public |
Advanced Info and Central Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Central Pattana
The main advantage of trading using opposite Advanced Info and Central Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Central Pattana 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 Central Pattana will offset losses from the drop in Central Pattana's long position.| Advanced Info vs. Synnex Public | Advanced Info vs. SVI Public | Advanced Info vs. Interlink Communication Public | Advanced Info vs. SCG PACKAGING PCL NVDR |
| Central Pattana vs. Eastern Star Real | Central Pattana vs. Ananda Development Public | Central Pattana vs. Better World Green | Central Pattana vs. Dcon Products 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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