Correlation Between AEON Thana and Advanced Info
Can any of the company-specific risk be diversified away by investing in both AEON Thana and Advanced Info 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 AEON Thana and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON Thana Sinsap and Advanced Info Service, you can compare the effects of market volatilities on AEON Thana and Advanced Info 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 AEON Thana with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON Thana and Advanced Info.
Diversification Opportunities for AEON Thana and Advanced Info
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEON and Advanced is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AEON Thana Sinsap and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and AEON Thana 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 AEON Thana Sinsap are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of AEON Thana i.e., AEON Thana and Advanced Info go up and down completely randomly.
Pair Corralation between AEON Thana and Advanced Info
Assuming the 90 days trading horizon AEON Thana Sinsap is expected to under-perform the Advanced Info. In addition to that, AEON Thana is 1.09 times more volatile than Advanced Info Service. It trades about -0.08 of its total potential returns per unit of risk. Advanced Info Service is currently generating about 0.14 per unit of volatility. If you would invest 25,900 in Advanced Info Service on September 12, 2024 and sell it today you would earn a total of 3,600 from holding Advanced Info Service or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON Thana Sinsap vs. Advanced Info Service
Performance |
| Timeline |
| AEON Thana Sinsap |
| Advanced Info Service |
AEON Thana and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON Thana and Advanced Info
The main advantage of trading using opposite AEON Thana and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON Thana position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info's long position.| AEON Thana vs. Krungthai Card PCL | AEON Thana vs. Carabao Group Public | AEON Thana vs. Kasikornbank Public | AEON Thana vs. Advanced Info Service |
| Advanced Info vs. Synnex Public | Advanced Info vs. SVI Public | Advanced Info vs. Interlink Communication Public | Advanced Info vs. The Erawan Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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