Correlation Between AAPICO Hitech and Southern Concrete
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and Southern Concrete 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 Southern Concrete 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 Southern Concrete Pile, you can compare the effects of market volatilities on AAPICO Hitech and Southern Concrete 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 Southern Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and Southern Concrete.
Diversification Opportunities for AAPICO Hitech and Southern Concrete
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AAPICO and Southern is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and Southern Concrete Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Concrete Pile 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 Southern Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Concrete Pile has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and Southern Concrete go up and down completely randomly.
Pair Corralation between AAPICO Hitech and Southern Concrete
Assuming the 90 days horizon AAPICO Hitech Public is expected to under-perform the Southern Concrete. In addition to that, AAPICO Hitech is 1.42 times more volatile than Southern Concrete Pile. It trades about -0.08 of its total potential returns per unit of risk. Southern Concrete Pile is currently generating about 0.06 per unit of volatility. If you would invest 373.00 in Southern Concrete Pile on January 15, 2025 and sell it today you would earn a total of 212.00 from holding Southern Concrete Pile or generate 56.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAPICO Hitech Public vs. Southern Concrete Pile
Performance |
| Timeline |
| AAPICO Hitech Public |
| Southern Concrete Pile |
AAPICO Hitech and Southern Concrete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and Southern Concrete
The main advantage of trading using opposite AAPICO Hitech and Southern Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, Southern Concrete 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 Southern Concrete will offset losses from the drop in Southern Concrete's long position.| AAPICO Hitech vs. Minor International Public | AAPICO Hitech vs. Home Product Center | AAPICO Hitech vs. CP ALL Public | AAPICO Hitech vs. Central Pattana Public |
| Southern Concrete vs. Quality Houses Public | Southern Concrete vs. Siam City Cement | Southern Concrete vs. SC Asset | Southern Concrete vs. Siam Steel Service |
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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