Correlation Between AJ Plast and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both AJ Plast 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 AJ Plast and Berli Jucker 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 Berli Jucker Public, you can compare the effects of market volatilities on AJ Plast 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 AJ Plast with a short position of Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of AJ Plast and Berli Jucker.
Diversification Opportunities for AJ Plast and Berli Jucker
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AJ Plast and Berli is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding AJ Plast Public 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 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 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 AJ Plast i.e., AJ Plast and Berli Jucker go up and down completely randomly.
Pair Corralation between AJ Plast and Berli Jucker
Assuming the 90 days horizon AJ Plast Public is expected to generate 23.92 times more return on investment than Berli Jucker. However, AJ Plast is 23.92 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 -0.03 per unit of risk. If you would invest 1,227 in AJ Plast Public on August 29, 2024 and sell it today you would lose (737.00) from holding AJ Plast Public or give up 60.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AJ Plast Public vs. Berli Jucker Public
Performance |
| Timeline |
| AJ Plast Public |
| Berli Jucker Public |
AJ Plast and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AJ Plast and Berli Jucker
The main advantage of trading using opposite AJ Plast and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AJ Plast 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.| AJ Plast vs. AAPICO Hitech Public | AJ Plast vs. AP Public | AJ Plast vs. Aikchol Hospital Public | AJ Plast vs. Bank of Ayudhya |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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