Correlation Between AAPICO Hitech and Mena Transport
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and Mena Transport 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 Mena Transport 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 Mena Transport Public, you can compare the effects of market volatilities on AAPICO Hitech and Mena Transport 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 Mena Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and Mena Transport.
Diversification Opportunities for AAPICO Hitech and Mena Transport
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between AAPICO and Mena is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and Mena Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mena Transport 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 Mena Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mena Transport Public has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and Mena Transport go up and down completely randomly.
Pair Corralation between AAPICO Hitech and Mena Transport
Assuming the 90 days horizon AAPICO Hitech Public is expected to under-perform the Mena Transport. But the stock apears to be less risky and, when comparing its historical volatility, AAPICO Hitech Public is 1.4 times less risky than Mena Transport. The stock trades about -0.03 of its potential returns per unit of risk. The Mena Transport Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Mena Transport Public on August 31, 2024 and sell it today you would lose (54.00) from holding Mena Transport Public or give up 30.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAPICO Hitech Public vs. Mena Transport Public
Performance |
| Timeline |
| AAPICO Hitech Public |
| Mena Transport Public |
AAPICO Hitech and Mena Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and Mena Transport
The main advantage of trading using opposite AAPICO Hitech and Mena Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, Mena Transport 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 Mena Transport will offset losses from the drop in Mena Transport's long position.| AAPICO Hitech vs. TRC Construction Public | AAPICO Hitech vs. Bangkok Expressway and | AAPICO Hitech vs. Lohakit Metal Public | AAPICO Hitech vs. Gunkul Engineering Public |
| Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Karmarts Public | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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