Correlation Between Advanced Information and SC Asset
Can any of the company-specific risk be diversified away by investing in both Advanced Information and SC Asset 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 SC Asset 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 SC Asset, you can compare the effects of market volatilities on Advanced Information and SC Asset 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 SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Information and SC Asset.
Diversification Opportunities for Advanced Information and SC Asset
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advanced and SC Asset is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset 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 SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Advanced Information i.e., Advanced Information and SC Asset go up and down completely randomly.
Pair Corralation between Advanced Information and SC Asset
Assuming the 90 days trading horizon Advanced Information Technology is expected to under-perform the SC Asset. In addition to that, Advanced Information is 2.0 times more volatile than SC Asset. It trades about -0.07 of its total potential returns per unit of risk. SC Asset is currently generating about -0.03 per unit of volatility. If you would invest 294.00 in SC Asset on September 12, 2024 and sell it today you would lose (2.00) from holding SC Asset or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Information Technolog vs. SC Asset
Performance |
| Timeline |
| Advanced Information |
| SC Asset |
Advanced Information and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Information and SC Asset
The main advantage of trading using opposite Advanced Information and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Information position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset'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 |
| SC Asset vs. Phatra Leasing Public | SC Asset vs. Mitsib Leasing Public | SC Asset vs. AJ Advance Technology | SC Asset vs. Global Green Chemicals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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