Correlation Between Akkhie Prakarn and Absolute Clean
Can any of the company-specific risk be diversified away by investing in both Akkhie Prakarn and Absolute Clean 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 Akkhie Prakarn and Absolute Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akkhie Prakarn Public and Absolute Clean Energy, you can compare the effects of market volatilities on Akkhie Prakarn and Absolute Clean 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 Akkhie Prakarn with a short position of Absolute Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akkhie Prakarn and Absolute Clean.
Diversification Opportunities for Akkhie Prakarn and Absolute Clean
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Akkhie and Absolute is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Akkhie Prakarn Public and Absolute Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Clean Energy and Akkhie Prakarn 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 Akkhie Prakarn Public are associated (or correlated) with Absolute Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Clean Energy has no effect on the direction of Akkhie Prakarn i.e., Akkhie Prakarn and Absolute Clean go up and down completely randomly.
Pair Corralation between Akkhie Prakarn and Absolute Clean
Assuming the 90 days trading horizon Akkhie Prakarn Public is expected to under-perform the Absolute Clean. In addition to that, Akkhie Prakarn is 3.1 times more volatile than Absolute Clean Energy. It trades about -0.23 of its total potential returns per unit of risk. Absolute Clean Energy is currently generating about -0.05 per unit of volatility. If you would invest 132.00 in Absolute Clean Energy on August 30, 2024 and sell it today you would lose (2.00) from holding Absolute Clean Energy or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Akkhie Prakarn Public vs. Absolute Clean Energy
Performance |
| Timeline |
| Akkhie Prakarn Public |
| Absolute Clean Energy |
Akkhie Prakarn and Absolute Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akkhie Prakarn and Absolute Clean
The main advantage of trading using opposite Akkhie Prakarn and Absolute Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akkhie Prakarn position performs unexpectedly, Absolute Clean 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 Absolute Clean will offset losses from the drop in Absolute Clean's long position.| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. Cho Thavee Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ARIP Public |
| Absolute Clean vs. BCPG Public | Absolute Clean vs. Energy Absolute Public | Absolute Clean vs. Gunkul Engineering Public | Absolute Clean vs. Gulf Energy Development |
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 Stocks Directory module to find actively traded stocks across global markets.
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