Correlation Between Advanced Info and Sakol Energy
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Sakol Energy 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 Sakol Energy 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 Sakol Energy Public, you can compare the effects of market volatilities on Advanced Info and Sakol Energy 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 Sakol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Sakol Energy.
Diversification Opportunities for Advanced Info and Sakol Energy
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advanced and Sakol is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Sakol Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakol Energy 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 Sakol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakol Energy Public has no effect on the direction of Advanced Info i.e., Advanced Info and Sakol Energy go up and down completely randomly.
Pair Corralation between Advanced Info and Sakol Energy
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.57 times more return on investment than Sakol Energy. However, Advanced Info Service is 1.74 times less risky than Sakol Energy. It trades about -0.13 of its potential returns per unit of risk. Sakol Energy Public is currently generating about -0.1 per unit of risk. If you would invest 28,600 in Advanced Info Service on September 22, 2024 and sell it today you would lose (1,200) from holding Advanced Info Service or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Advanced Info Service vs. Sakol Energy Public
Performance |
| Timeline |
| Advanced Info Service |
| Sakol Energy Public |
Advanced Info and Sakol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Sakol Energy
The main advantage of trading using opposite Advanced Info and Sakol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Sakol Energy 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 Sakol Energy will offset losses from the drop in Sakol Energy'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 |
| Sakol Energy vs. Siamgas and Petrochemicals | Sakol Energy vs. Star Petroleum Refining | Sakol Energy vs. PTG Energy PCL | Sakol Energy vs. IRPC 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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