Correlation Between Akkhie Prakarn and Asia Green
Can any of the company-specific risk be diversified away by investing in both Akkhie Prakarn and Asia Green 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 Asia Green 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 Asia Green Energy, you can compare the effects of market volatilities on Akkhie Prakarn and Asia Green 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 Asia Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akkhie Prakarn and Asia Green.
Diversification Opportunities for Akkhie Prakarn and Asia Green
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akkhie and Asia is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Akkhie Prakarn Public and Asia Green Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Green 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 Asia Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Green Energy has no effect on the direction of Akkhie Prakarn i.e., Akkhie Prakarn and Asia Green go up and down completely randomly.
Pair Corralation between Akkhie Prakarn and Asia Green
Assuming the 90 days trading horizon Akkhie Prakarn Public is expected to under-perform the Asia Green. In addition to that, Akkhie Prakarn is 3.34 times more volatile than Asia Green Energy. It trades about -0.21 of its total potential returns per unit of risk. Asia Green Energy is currently generating about -0.29 per unit of volatility. If you would invest 132.00 in Asia Green Energy on August 30, 2024 and sell it today you would lose (10.00) from holding Asia Green Energy or give up 7.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akkhie Prakarn Public vs. Asia Green Energy
Performance |
| Timeline |
| Akkhie Prakarn Public |
| Asia Green Energy |
Akkhie Prakarn and Asia Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akkhie Prakarn and Asia Green
The main advantage of trading using opposite Akkhie Prakarn and Asia Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akkhie Prakarn position performs unexpectedly, Asia Green 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 Asia Green will offset losses from the drop in Asia Green'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 |
| Asia Green vs. Unimit Engineering Public | Asia Green vs. Union Petrochemical Public | Asia Green vs. Eureka Design Public | Asia Green vs. Winner Group Enterprise |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |