Correlation Between Advanced Information and Sky ICT
Can any of the company-specific risk be diversified away by investing in both Advanced Information and Sky ICT 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 Sky ICT 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 Sky ICT Public, you can compare the effects of market volatilities on Advanced Information and Sky ICT 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 Sky ICT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Information and Sky ICT.
Diversification Opportunities for Advanced Information and Sky ICT
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advanced and Sky is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and Sky ICT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky ICT 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 Sky ICT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky ICT Public has no effect on the direction of Advanced Information i.e., Advanced Information and Sky ICT go up and down completely randomly.
Pair Corralation between Advanced Information and Sky ICT
Assuming the 90 days trading horizon Advanced Information Technology is expected to generate 1.0 times more return on investment than Sky ICT. However, Advanced Information Technology is 1.0 times less risky than Sky ICT. It trades about 0.06 of its potential returns per unit of risk. Sky ICT Public is currently generating about 0.06 per unit of risk. If you would invest 362.00 in Advanced Information Technology on September 3, 2024 and sell it today you would earn a total of 84.00 from holding Advanced Information Technology or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Information Technolog vs. Sky ICT Public
Performance |
| Timeline |
| Advanced Information |
| Sky ICT Public |
Advanced Information and Sky ICT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Information and Sky ICT
The main advantage of trading using opposite Advanced Information and Sky ICT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Information position performs unexpectedly, Sky ICT 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 Sky ICT will offset losses from the drop in Sky ICT'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 |
| Sky ICT vs. Forth Public | Sky ICT vs. Delta Electronics Public | Sky ICT vs. MFEC PCL | Sky ICT vs. Hana Microelectronics 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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