Correlation Between Advanced Info and Polyplex Public
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Polyplex Public 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 Polyplex Public 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 Polyplex Public, you can compare the effects of market volatilities on Advanced Info and Polyplex Public 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 Polyplex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Polyplex Public.
Diversification Opportunities for Advanced Info and Polyplex Public
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and Polyplex is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex 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 Polyplex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex Public has no effect on the direction of Advanced Info i.e., Advanced Info and Polyplex Public go up and down completely randomly.
Pair Corralation between Advanced Info and Polyplex Public
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.44 times more return on investment than Polyplex Public. However, Advanced Info Service is 2.29 times less risky than Polyplex Public. It trades about 0.1 of its potential returns per unit of risk. Polyplex Public is currently generating about -0.03 per unit of risk. If you would invest 17,202 in Advanced Info Service on September 3, 2024 and sell it today you would earn a total of 11,298 from holding Advanced Info Service or generate 65.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Polyplex Public
Performance |
| Timeline |
| Advanced Info Service |
| Polyplex Public |
Advanced Info and Polyplex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Polyplex Public
The main advantage of trading using opposite Advanced Info and Polyplex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Polyplex Public 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 Polyplex Public will offset losses from the drop in Polyplex Public's long position.| Advanced Info vs. SRI TRANG GLOVES | Advanced Info vs. AEON Thana Sinsap | Advanced Info vs. AEON Thana Sinsap | Advanced Info vs. Asian Alliance International |
| Polyplex Public vs. PTT Public | Polyplex Public vs. PTT Exploration and | Polyplex Public vs. The Siam Cement | Polyplex Public 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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