Correlation Between Advanced Info and Land
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Land 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 Land 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 Land and Houses, you can compare the effects of market volatilities on Advanced Info and Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Land.
Diversification Opportunities for Advanced Info and Land
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Advanced and Land is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Advanced Info i.e., Advanced Info and Land go up and down completely randomly.
Pair Corralation between Advanced Info and Land
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.82 times more return on investment than Land. However, Advanced Info Service is 1.22 times less risky than Land. It trades about 0.08 of its potential returns per unit of risk. Land and Houses is currently generating about -0.12 per unit of risk. If you would invest 20,801 in Advanced Info Service on November 9, 2024 and sell it today you would earn a total of 6,699 from holding Advanced Info Service or generate 32.21% 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. Land and Houses
Performance |
| Timeline |
| Advanced Info Service |
| Land and Houses |
Advanced Info and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Land
The main advantage of trading using opposite Advanced Info and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Land 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 Land will offset losses from the drop in Land'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 |
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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