Correlation Between Advanced Info and Thaicom Public
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Thaicom 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 Thaicom 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 Thaicom Public, you can compare the effects of market volatilities on Advanced Info and Thaicom 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 Thaicom Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Thaicom Public.
Diversification Opportunities for Advanced Info and Thaicom Public
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advanced and Thaicom is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Thaicom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaicom 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 Thaicom Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaicom Public has no effect on the direction of Advanced Info i.e., Advanced Info and Thaicom Public go up and down completely randomly.
Pair Corralation between Advanced Info and Thaicom Public
Assuming the 90 days trading horizon Advanced Info is expected to generate 28.52 times less return on investment than Thaicom Public. But when comparing it to its historical volatility, Advanced Info Service is 47.28 times less risky than Thaicom Public. It trades about 0.09 of its potential returns per unit of risk. Thaicom Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,337 in Thaicom Public on September 4, 2024 and sell it today you would lose (7.00) from holding Thaicom Public or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Thaicom Public
Performance |
| Timeline |
| Advanced Info Service |
| Thaicom Public |
Advanced Info and Thaicom Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Thaicom Public
The main advantage of trading using opposite Advanced Info and Thaicom Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Thaicom 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 Thaicom Public will offset losses from the drop in Thaicom Public'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 |
| Thaicom Public vs. SRI TRANG GLOVES | Thaicom Public vs. AEON Thana Sinsap | Thaicom Public vs. Asian Alliance International | Thaicom Public vs. Sikarin 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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