Correlation Between AAPICO Hitech and Bangsaphan Barmill
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and Bangsaphan Barmill 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 Bangsaphan Barmill 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 Bangsaphan Barmill Public, you can compare the effects of market volatilities on AAPICO Hitech and Bangsaphan Barmill 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 Bangsaphan Barmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and Bangsaphan Barmill.
Diversification Opportunities for AAPICO Hitech and Bangsaphan Barmill
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AAPICO and Bangsaphan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and Bangsaphan Barmill Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangsaphan Barmill 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 Bangsaphan Barmill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangsaphan Barmill Public has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and Bangsaphan Barmill go up and down completely randomly.
Pair Corralation between AAPICO Hitech and Bangsaphan Barmill
Assuming the 90 days horizon AAPICO Hitech Public is expected to generate 1.3 times more return on investment than Bangsaphan Barmill. However, AAPICO Hitech is 1.3 times more volatile than Bangsaphan Barmill Public. It trades about -0.07 of its potential returns per unit of risk. Bangsaphan Barmill Public is currently generating about -0.09 per unit of risk. If you would invest 1,430 in AAPICO Hitech Public on November 27, 2024 and sell it today you would lose (40.00) from holding AAPICO Hitech Public or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAPICO Hitech Public vs. Bangsaphan Barmill Public
Performance |
| Timeline |
| AAPICO Hitech Public |
| Bangsaphan Barmill Public |
AAPICO Hitech and Bangsaphan Barmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and Bangsaphan Barmill
The main advantage of trading using opposite AAPICO Hitech and Bangsaphan Barmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, Bangsaphan Barmill 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 Bangsaphan Barmill will offset losses from the drop in Bangsaphan Barmill's long position.| AAPICO Hitech vs. S Hotels and | AAPICO Hitech vs. Asia Hotel Public | AAPICO Hitech vs. MFC Asset Management | AAPICO Hitech vs. Laguna Resorts Hotels |
| Bangsaphan Barmill vs. Asia Metal Public | Bangsaphan Barmill vs. Chonburi Concrete Product | Bangsaphan Barmill vs. Asia Plus Group | Bangsaphan Barmill vs. CSP Steel Center |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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