Correlation Between Advanced Info and Intouch Holdings
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Intouch Holdings 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 Intouch Holdings 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 Intouch Holdings Public, you can compare the effects of market volatilities on Advanced Info and Intouch Holdings 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 Intouch Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Intouch Holdings.
Diversification Opportunities for Advanced Info and Intouch Holdings
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advanced and Intouch is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Intouch Holdings Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Holdings 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 Intouch Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Holdings Public has no effect on the direction of Advanced Info i.e., Advanced Info and Intouch Holdings go up and down completely randomly.
Pair Corralation between Advanced Info and Intouch Holdings
Assuming the 90 days trading horizon Advanced Info Service is expected to under-perform the Intouch Holdings. In addition to that, Advanced Info is 1.07 times more volatile than Intouch Holdings Public. It trades about 0.0 of its total potential returns per unit of risk. Intouch Holdings Public is currently generating about 0.13 per unit of volatility. If you would invest 9,375 in Intouch Holdings Public on November 3, 2024 and sell it today you would earn a total of 350.00 from holding Intouch Holdings Public or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Intouch Holdings Public
Performance |
| Timeline |
| Advanced Info Service |
| Intouch Holdings Public |
Advanced Info and Intouch Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Intouch Holdings
The main advantage of trading using opposite Advanced Info and Intouch Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Intouch Holdings 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 Intouch Holdings will offset losses from the drop in Intouch Holdings' long position.| Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank Public |
| Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. PTT Global Chemical | Intouch Holdings vs. PTT Public | Intouch Holdings vs. CP ALL 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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