Correlation Between AJ Plast and Allianz Ayudhya
Can any of the company-specific risk be diversified away by investing in both AJ Plast and Allianz Ayudhya 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 AJ Plast and Allianz Ayudhya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AJ Plast Public and Allianz Ayudhya Capital, you can compare the effects of market volatilities on AJ Plast and Allianz Ayudhya 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 AJ Plast with a short position of Allianz Ayudhya. Check out your portfolio center. Please also check ongoing floating volatility patterns of AJ Plast and Allianz Ayudhya.
Diversification Opportunities for AJ Plast and Allianz Ayudhya
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AJ Plast and Allianz is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AJ Plast Public and Allianz Ayudhya Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Ayudhya Capital and AJ Plast 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 AJ Plast Public are associated (or correlated) with Allianz Ayudhya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Ayudhya Capital has no effect on the direction of AJ Plast i.e., AJ Plast and Allianz Ayudhya go up and down completely randomly.
Pair Corralation between AJ Plast and Allianz Ayudhya
Assuming the 90 days horizon AJ Plast is expected to generate 1.18 times less return on investment than Allianz Ayudhya. In addition to that, AJ Plast is 1.0 times more volatile than Allianz Ayudhya Capital. It trades about 0.03 of its total potential returns per unit of risk. Allianz Ayudhya Capital is currently generating about 0.04 per unit of volatility. If you would invest 3,799 in Allianz Ayudhya Capital on November 6, 2024 and sell it today you would lose (724.00) from holding Allianz Ayudhya Capital or give up 19.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AJ Plast Public vs. Allianz Ayudhya Capital
Performance |
| Timeline |
| AJ Plast Public |
| Allianz Ayudhya Capital |
AJ Plast and Allianz Ayudhya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AJ Plast and Allianz Ayudhya
The main advantage of trading using opposite AJ Plast and Allianz Ayudhya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AJ Plast position performs unexpectedly, Allianz Ayudhya 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 Allianz Ayudhya will offset losses from the drop in Allianz Ayudhya's long position.| AJ Plast vs. AAPICO Hitech Public | AJ Plast vs. AP Public | AJ Plast vs. Aikchol Hospital Public | AJ Plast vs. Asia Fiber Public |
| Allianz Ayudhya vs. Bangkok Aviation Fuel | Allianz Ayudhya vs. AP Public | Allianz Ayudhya vs. BEC World 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |