Correlation Between Advanced Info and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Advanced Info and Thai Oil 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 Thai Oil 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 Thai Oil Public, you can compare the effects of market volatilities on Advanced Info and Thai Oil 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Thai Oil.
Diversification Opportunities for Advanced Info and Thai Oil
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advanced and Thai is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Advanced Info i.e., Advanced Info and Thai Oil go up and down completely randomly.
Pair Corralation between Advanced Info and Thai Oil
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.5 times more return on investment than Thai Oil. However, Advanced Info Service is 1.99 times less risky than Thai Oil. It trades about 0.0 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.11 per unit of risk. If you would invest 28,500 in Advanced Info Service on November 3, 2024 and sell it today you would lose (100.00) from holding Advanced Info Service or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Advanced Info Service vs. Thai Oil Public
Performance |
| Timeline |
| Advanced Info Service |
| Thai Oil Public |
Advanced Info and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Thai Oil
The main advantage of trading using opposite Advanced Info and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, Thai Oil 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 Thai Oil will offset losses from the drop in Thai Oil'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 |
| Thai Oil vs. Somboon Advance Technology | Thai Oil vs. Sun Vending Technology | Thai Oil vs. Interlink Communication Public | Thai Oil vs. Jasmine Telecom Systems |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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