Correlation Between Advanced Information and Aikchol Hospital
Can any of the company-specific risk be diversified away by investing in both Advanced Information and Aikchol Hospital 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 Advanced Information and Aikchol Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Information Technology and Aikchol Hospital Public, you can compare the effects of market volatilities on Advanced Information and Aikchol Hospital 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 Advanced Information with a short position of Aikchol Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Information and Aikchol Hospital.
Diversification Opportunities for Advanced Information and Aikchol Hospital
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Advanced and Aikchol is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and Aikchol Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aikchol Hospital Public and Advanced Information 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 Advanced Information Technology are associated (or correlated) with Aikchol Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aikchol Hospital Public has no effect on the direction of Advanced Information i.e., Advanced Information and Aikchol Hospital go up and down completely randomly.
Pair Corralation between Advanced Information and Aikchol Hospital
Assuming the 90 days trading horizon Advanced Information Technology is expected to generate 2.75 times more return on investment than Aikchol Hospital. However, Advanced Information is 2.75 times more volatile than Aikchol Hospital Public. It trades about 0.04 of its potential returns per unit of risk. Aikchol Hospital Public is currently generating about -0.2 per unit of risk. If you would invest 426.00 in Advanced Information Technology on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Advanced Information Technology or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Information Technolog vs. Aikchol Hospital Public
Performance |
| Timeline |
| Advanced Information |
| Aikchol Hospital Public |
Advanced Information and Aikchol Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Information and Aikchol Hospital
The main advantage of trading using opposite Advanced Information and Aikchol Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Information position performs unexpectedly, Aikchol Hospital 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 Aikchol Hospital will offset losses from the drop in Aikchol Hospital's long position.| Advanced Information vs. AP Public | Advanced Information vs. Jasmine International Public | Advanced Information vs. Asia Plus Group | Advanced Information vs. Bangchak Public |
| Aikchol Hospital vs. AP Public | Aikchol Hospital vs. Bumrungrad Hospital Public | Aikchol Hospital vs. Advanced Information Technology | Aikchol Hospital vs. AJ Plast 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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