Correlation Between Advanced Information and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Advanced Information and Bangkok Chain 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 Bangkok Chain 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 Bangkok Chain Hospital, you can compare the effects of market volatilities on Advanced Information and Bangkok Chain 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 Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Information and Bangkok Chain.
Diversification Opportunities for Advanced Information and Bangkok Chain
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advanced and Bangkok is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital 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 Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Advanced Information i.e., Advanced Information and Bangkok Chain go up and down completely randomly.
Pair Corralation between Advanced Information and Bangkok Chain
Assuming the 90 days trading horizon Advanced Information Technology is expected to generate 1.29 times more return on investment than Bangkok Chain. However, Advanced Information is 1.29 times more volatile than Bangkok Chain Hospital. It trades about 0.08 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.14 per unit of risk. If you would invest 420.00 in Advanced Information Technology on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Advanced Information Technology or generate 2.86% 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. Bangkok Chain Hospital
Performance |
| Timeline |
| Advanced Information |
| Bangkok Chain Hospital |
Advanced Information and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Information and Bangkok Chain
The main advantage of trading using opposite Advanced Information and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Information position performs unexpectedly, Bangkok Chain 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 Bangkok Chain will offset losses from the drop in Bangkok Chain'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 |
| Bangkok Chain vs. AP Public | Bangkok Chain vs. Advanced Information Technology | Bangkok Chain vs. AJ Plast Public | Bangkok Chain vs. Berli Jucker 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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