Correlation Between AAPICO Hitech and AJ Plast
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and AJ Plast 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 AAPICO Hitech and AJ Plast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAPICO Hitech Public and AJ Plast Public, you can compare the effects of market volatilities on AAPICO Hitech and AJ Plast 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 AAPICO Hitech with a short position of AJ Plast. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and AJ Plast.
Diversification Opportunities for AAPICO Hitech and AJ Plast
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AAPICO and AJ Plast is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and AJ Plast Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ Plast Public and AAPICO Hitech 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 AAPICO Hitech Public are associated (or correlated) with AJ Plast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ Plast Public has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and AJ Plast go up and down completely randomly.
Pair Corralation between AAPICO Hitech and AJ Plast
Assuming the 90 days horizon AAPICO Hitech Public is expected to under-perform the AJ Plast. In addition to that, AAPICO Hitech is 2.26 times more volatile than AJ Plast Public. It trades about -0.19 of its total potential returns per unit of risk. AJ Plast Public is currently generating about -0.15 per unit of volatility. If you would invest 510.00 in AJ Plast Public on August 29, 2024 and sell it today you would lose (20.00) from holding AJ Plast Public or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AAPICO Hitech Public vs. AJ Plast Public
Performance |
| Timeline |
| AAPICO Hitech Public |
| AJ Plast Public |
AAPICO Hitech and AJ Plast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and AJ Plast
The main advantage of trading using opposite AAPICO Hitech and AJ Plast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, AJ Plast 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 AJ Plast will offset losses from the drop in AJ Plast's long position.| AAPICO Hitech vs. Delta Electronics Public | AAPICO Hitech vs. Namwiwat Medical | AAPICO Hitech vs. Silicon Craft Technology | AAPICO Hitech vs. Winnergy Medical Public |
| AJ Plast vs. AAPICO Hitech Public | AJ Plast vs. AP Public | AJ Plast vs. Aikchol Hospital Public | AJ Plast vs. Bank of Ayudhya |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |