Correlation Between Asia Fiber and Allianz Ayudhya
Can any of the company-specific risk be diversified away by investing in both Asia Fiber and Allianz Ayudhya 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 Asia Fiber and Allianz Ayudhya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Fiber Public and Allianz Ayudhya Capital, you can compare the effects of market volatilities on Asia Fiber and Allianz Ayudhya 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 Asia Fiber with a short position of Allianz Ayudhya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Fiber and Allianz Ayudhya.
Diversification Opportunities for Asia Fiber and Allianz Ayudhya
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asia and Allianz is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Asia Fiber Public and Allianz Ayudhya Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Ayudhya Capital and Asia Fiber 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 Asia Fiber Public are associated (or correlated) with Allianz Ayudhya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Ayudhya Capital has no effect on the direction of Asia Fiber i.e., Asia Fiber and Allianz Ayudhya go up and down completely randomly.
Pair Corralation between Asia Fiber and Allianz Ayudhya
Assuming the 90 days trading horizon Asia Fiber is expected to generate 1.09 times less return on investment than Allianz Ayudhya. In addition to that, Asia Fiber is 1.0 times more volatile than Allianz Ayudhya Capital. It trades about 0.04 of its total potential returns per unit of risk. Allianz Ayudhya Capital is currently generating about 0.04 per unit of volatility. If you would invest 3,799 in Allianz Ayudhya Capital on November 6, 2024 and sell it today you would lose (724.00) from holding Allianz Ayudhya Capital or give up 19.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Fiber Public vs. Allianz Ayudhya Capital
Performance |
| Timeline |
| Asia Fiber Public |
| Allianz Ayudhya Capital |
Asia Fiber and Allianz Ayudhya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Fiber and Allianz Ayudhya
The main advantage of trading using opposite Asia Fiber and Allianz Ayudhya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Fiber position performs unexpectedly, Allianz Ayudhya 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 Allianz Ayudhya will offset losses from the drop in Allianz Ayudhya's long position.| Asia Fiber vs. AJ Plast Public | Asia Fiber vs. Aikchol Hospital Public | Asia Fiber vs. Boutique Newcity Public | Asia Fiber vs. Allianz Ayudhya Capital |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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