Correlation Between AJ Advance and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both AJ Advance and Silicon Craft 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 Advance and Silicon Craft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AJ Advance Technology and Silicon Craft Technology, you can compare the effects of market volatilities on AJ Advance and Silicon Craft 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 Advance with a short position of Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of AJ Advance and Silicon Craft.
Diversification Opportunities for AJ Advance and Silicon Craft
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AJA and Silicon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding AJ Advance Technology and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology and AJ Advance 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 Advance Technology are associated (or correlated) with Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of AJ Advance i.e., AJ Advance and Silicon Craft go up and down completely randomly.
Pair Corralation between AJ Advance and Silicon Craft
Assuming the 90 days trading horizon AJ Advance Technology is expected to generate 29.63 times more return on investment than Silicon Craft. However, AJ Advance is 29.63 times more volatile than Silicon Craft Technology. It trades about 0.08 of its potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.05 per unit of risk. If you would invest 21.00 in AJ Advance Technology on September 19, 2024 and sell it today you would lose (5.00) from holding AJ Advance Technology or give up 23.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AJ Advance Technology vs. Silicon Craft Technology
Performance |
| Timeline |
| AJ Advance Technology |
| Silicon Craft Technology |
AJ Advance and Silicon Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AJ Advance and Silicon Craft
The main advantage of trading using opposite AJ Advance and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AJ Advance position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft's long position.| AJ Advance vs. Hwa Fong Rubber | AJ Advance vs. AAPICO Hitech Public | AJ Advance vs. Haad Thip Public | AJ Advance vs. Italian Thai Development Public |
| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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