Correlation Between AAPICO Hitech and Polyplex Public
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and Polyplex Public 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 Polyplex Public 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 Polyplex Public, you can compare the effects of market volatilities on AAPICO Hitech and Polyplex Public 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 Polyplex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and Polyplex Public.
Diversification Opportunities for AAPICO Hitech and Polyplex Public
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AAPICO and Polyplex is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex 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 Polyplex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex Public has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and Polyplex Public go up and down completely randomly.
Pair Corralation between AAPICO Hitech and Polyplex Public
Assuming the 90 days horizon AAPICO Hitech Public is expected to generate 0.88 times more return on investment than Polyplex Public. However, AAPICO Hitech Public is 1.14 times less risky than Polyplex Public. It trades about -0.03 of its potential returns per unit of risk. Polyplex Public is currently generating about -0.03 per unit of risk. If you would invest 2,994 in AAPICO Hitech Public on September 1, 2024 and sell it today you would lose (1,194) from holding AAPICO Hitech Public or give up 39.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
AAPICO Hitech Public vs. Polyplex Public
Performance |
| Timeline |
| AAPICO Hitech Public |
| Polyplex Public |
AAPICO Hitech and Polyplex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and Polyplex Public
The main advantage of trading using opposite AAPICO Hitech and Polyplex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, Polyplex Public 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 Polyplex Public will offset losses from the drop in Polyplex Public'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 |
| Polyplex Public vs. AAPICO Hitech Public | Polyplex Public vs. AP Public | Polyplex Public vs. Aikchol Hospital Public | Polyplex Public 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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