Correlation Between Advanced Info and Grande Asset
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Grande Asset 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 Grande Asset 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 Grande Asset Hotels, you can compare the effects of market volatilities on Advanced Info and Grande Asset 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 Grande Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Grande Asset.
Diversification Opportunities for Advanced Info and Grande Asset
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advanced and Grande is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Grande Asset Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Asset Hotels 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 Grande Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Asset Hotels has no effect on the direction of Advanced Info i.e., Advanced Info and Grande Asset go up and down completely randomly.
Pair Corralation between Advanced Info and Grande Asset
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.21 times more return on investment than Grande Asset. However, Advanced Info Service is 4.81 times less risky than Grande Asset. It trades about 0.14 of its potential returns per unit of risk. Grande Asset Hotels is currently generating about -0.1 per unit of risk. If you would invest 27,100 in Advanced Info Service on August 29, 2024 and sell it today you would earn a total of 1,200 from holding Advanced Info Service or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Advanced Info Service vs. Grande Asset Hotels
Performance |
| Timeline |
| Advanced Info Service |
| Grande Asset Hotels |
Advanced Info and Grande Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Grande Asset
The main advantage of trading using opposite Advanced Info and Grande Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Grande Asset 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 Grande Asset will offset losses from the drop in Grande Asset'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 |
| Grande Asset vs. CP ALL Public | Grande Asset vs. Bangkok Dusit Medical | Grande Asset vs. Central Pattana Public | Grande Asset vs. Advanced Info Service |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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