Correlation Between AAPICO Hitech and Com7 PCL
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and Com7 PCL 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 Com7 PCL 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 Com7 PCL, you can compare the effects of market volatilities on AAPICO Hitech and Com7 PCL 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 Com7 PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and Com7 PCL.
Diversification Opportunities for AAPICO Hitech and Com7 PCL
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AAPICO and Com7 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and Com7 PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com7 PCL 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 Com7 PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com7 PCL has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and Com7 PCL go up and down completely randomly.
Pair Corralation between AAPICO Hitech and Com7 PCL
Assuming the 90 days horizon AAPICO Hitech Public is expected to under-perform the Com7 PCL. But the stock apears to be less risky and, when comparing its historical volatility, AAPICO Hitech Public is 1.1 times less risky than Com7 PCL. The stock trades about -0.07 of its potential returns per unit of risk. The Com7 PCL is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,942 in Com7 PCL on September 12, 2024 and sell it today you would lose (217.00) from holding Com7 PCL or give up 7.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAPICO Hitech Public vs. Com7 PCL
Performance |
| Timeline |
| AAPICO Hitech Public |
| Com7 PCL |
AAPICO Hitech and Com7 PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and Com7 PCL
The main advantage of trading using opposite AAPICO Hitech and Com7 PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, Com7 PCL 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 Com7 PCL will offset losses from the drop in Com7 PCL's long position.| AAPICO Hitech vs. ALL ENERGY UTILITIES | AAPICO Hitech vs. Dexon Technology PCL | AAPICO Hitech vs. Vintcom Technology PCL | AAPICO Hitech vs. Union Plastic Public |
| Com7 PCL vs. Hwa Fong Rubber | Com7 PCL vs. AAPICO Hitech Public | Com7 PCL vs. Haad Thip Public | Com7 PCL vs. Italian Thai Development Public |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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