Correlation Between Advanced Info and Plus Tech
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Plus Tech 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 Plus Tech 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 Plus Tech Innovation, you can compare the effects of market volatilities on Advanced Info and Plus Tech 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 Plus Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Plus Tech.
Diversification Opportunities for Advanced Info and Plus Tech
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advanced and Plus is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Plus Tech Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plus Tech Innovation 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 Plus Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plus Tech Innovation has no effect on the direction of Advanced Info i.e., Advanced Info and Plus Tech go up and down completely randomly.
Pair Corralation between Advanced Info and Plus Tech
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.16 times more return on investment than Plus Tech. However, Advanced Info Service is 6.26 times less risky than Plus Tech. It trades about 0.14 of its potential returns per unit of risk. Plus Tech Innovation is currently generating about -0.21 per unit of risk. If you would invest 27,500 in Advanced Info Service on August 24, 2024 and sell it today you would earn a total of 1,100 from holding Advanced Info Service or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Plus Tech Innovation
Performance |
| Timeline |
| Advanced Info Service |
| Plus Tech Innovation |
Advanced Info and Plus Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Plus Tech
The main advantage of trading using opposite Advanced Info and Plus Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Plus Tech 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 Plus Tech will offset losses from the drop in Plus Tech'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 |
| Plus Tech vs. Com7 PCL | Plus Tech vs. TKS Technologies Public | Plus Tech vs. Rajthanee Hospital Public | Plus Tech vs. The Erawan Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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