Correlation Between Advanced Info and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both Advanced Info and TISCO Financial 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 TISCO Financial 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 TISCO Financial Group, you can compare the effects of market volatilities on Advanced Info and TISCO Financial 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 TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and TISCO Financial.
Diversification Opportunities for Advanced Info and TISCO Financial
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and TISCO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and TISCO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TISCO Financial Group 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 TISCO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TISCO Financial Group has no effect on the direction of Advanced Info i.e., Advanced Info and TISCO Financial go up and down completely randomly.
Pair Corralation between Advanced Info and TISCO Financial
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 3.67 times more return on investment than TISCO Financial. However, Advanced Info is 3.67 times more volatile than TISCO Financial Group. It trades about 0.05 of its potential returns per unit of risk. TISCO Financial Group is currently generating about 0.07 per unit of risk. If you would invest 28,142 in Advanced Info Service on November 27, 2024 and sell it today you would earn a total of 458.00 from holding Advanced Info Service or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. TISCO Financial Group
Performance |
| Timeline |
| Advanced Info Service |
| TISCO Financial Group |
Advanced Info and TISCO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and TISCO Financial
The main advantage of trading using opposite Advanced Info and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, TISCO Financial 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 TISCO Financial will offset losses from the drop in TISCO Financial'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 |
| TISCO Financial vs. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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