Correlation Between Advanced Information and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both Advanced Information and Berli Jucker 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 Berli Jucker 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 Berli Jucker Public, you can compare the effects of market volatilities on Advanced Information and Berli Jucker 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 Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Information and Berli Jucker.
Diversification Opportunities for Advanced Information and Berli Jucker
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advanced and Berli is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and Berli Jucker Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker 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 Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker Public has no effect on the direction of Advanced Information i.e., Advanced Information and Berli Jucker go up and down completely randomly.
Pair Corralation between Advanced Information and Berli Jucker
Assuming the 90 days trading horizon Advanced Information Technology is expected to generate 1.34 times more return on investment than Berli Jucker. However, Advanced Information is 1.34 times more volatile than Berli Jucker Public. It trades about 0.04 of its potential returns per unit of risk. Berli Jucker Public is currently generating about -0.06 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Information Technolog vs. Berli Jucker Public
Performance |
| Timeline |
| Advanced Information |
| Berli Jucker Public |
Advanced Information and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Information and Berli Jucker
The main advantage of trading using opposite Advanced Information and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Information position performs unexpectedly, Berli Jucker 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 Berli Jucker will offset losses from the drop in Berli Jucker'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 |
| Berli Jucker vs. CP ALL Public | Berli Jucker vs. Bangkok Dusit Medical | Berli Jucker vs. BTS Group Holdings | Berli Jucker vs. Central Pattana 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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