Correlation Between Asia Green and Akkhie Prakarn
Can any of the company-specific risk be diversified away by investing in both Asia Green and Akkhie Prakarn 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 Green and Akkhie Prakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Green Energy and Akkhie Prakarn Public, you can compare the effects of market volatilities on Asia Green and Akkhie Prakarn 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 Green with a short position of Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Green and Akkhie Prakarn.
Diversification Opportunities for Asia Green and Akkhie Prakarn
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asia and Akkhie is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Asia Green Energy and Akkhie Prakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akkhie Prakarn Public and Asia Green 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 Green Energy are associated (or correlated) with Akkhie Prakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akkhie Prakarn Public has no effect on the direction of Asia Green i.e., Asia Green and Akkhie Prakarn go up and down completely randomly.
Pair Corralation between Asia Green and Akkhie Prakarn
Assuming the 90 days trading horizon Asia Green is expected to generate 1.01 times less return on investment than Akkhie Prakarn. But when comparing it to its historical volatility, Asia Green Energy is 1.0 times less risky than Akkhie Prakarn. It trades about 0.11 of its potential returns per unit of risk. Akkhie Prakarn Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Akkhie Prakarn Public on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Akkhie Prakarn Public or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Green Energy vs. Akkhie Prakarn Public
Performance |
| Timeline |
| Asia Green Energy |
| Akkhie Prakarn Public |
Asia Green and Akkhie Prakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Green and Akkhie Prakarn
The main advantage of trading using opposite Asia Green and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Green position performs unexpectedly, Akkhie Prakarn 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 Akkhie Prakarn will offset losses from the drop in Akkhie Prakarn's long position.The idea behind Asia Green Energy and Akkhie Prakarn Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ASIA Capital 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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