Correlation Between Advanced Info and True Public
Can any of the company-specific risk be diversified away by investing in both Advanced Info and True 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 True 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 True Public, you can compare the effects of market volatilities on Advanced Info and True 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 True Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and True Public.
Diversification Opportunities for Advanced Info and True Public
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advanced and True is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and True Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True 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 True Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Public has no effect on the direction of Advanced Info i.e., Advanced Info and True Public go up and down completely randomly.
Pair Corralation between Advanced Info and True Public
Assuming the 90 days trading horizon Advanced Info Service is expected to under-perform the True Public. But the stock apears to be less risky and, when comparing its historical volatility, Advanced Info Service is 1.62 times less risky than True Public. The stock trades about 0.0 of its potential returns per unit of risk. The True Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,120 in True Public on November 3, 2024 and sell it today you would earn a total of 50.00 from holding True Public or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. True Public
Performance |
| Timeline |
| Advanced Info Service |
| True Public |
Advanced Info and True Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and True Public
The main advantage of trading using opposite Advanced Info and True Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info position performs unexpectedly, True 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 True Public will offset losses from the drop in True 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 |
| True Public vs. Advanced Info Service | True Public vs. PTT Public | True Public vs. Charoen Pokphand Foods | True Public vs. SCB X 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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