Correlation Between Akkhie Prakarn and Aqua Public
Can any of the company-specific risk be diversified away by investing in both Akkhie Prakarn and Aqua Public 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 Aqua Public 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 Aqua Public, you can compare the effects of market volatilities on Akkhie Prakarn and Aqua Public 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 Aqua Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akkhie Prakarn and Aqua Public.
Diversification Opportunities for Akkhie Prakarn and Aqua Public
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akkhie and Aqua is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Akkhie Prakarn Public and Aqua Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqua Public 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 Aqua Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqua Public has no effect on the direction of Akkhie Prakarn i.e., Akkhie Prakarn and Aqua Public go up and down completely randomly.
Pair Corralation between Akkhie Prakarn and Aqua Public
Assuming the 90 days trading horizon Akkhie Prakarn Public is expected to under-perform the Aqua Public. In addition to that, Akkhie Prakarn is 1.61 times more volatile than Aqua Public. It trades about -0.26 of its total potential returns per unit of risk. Aqua Public is currently generating about -0.1 per unit of volatility. If you would invest 35.00 in Aqua Public on August 29, 2024 and sell it today you would lose (2.00) from holding Aqua Public or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akkhie Prakarn Public vs. Aqua Public
Performance |
| Timeline |
| Akkhie Prakarn Public |
| Aqua Public |
Akkhie Prakarn and Aqua Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akkhie Prakarn and Aqua Public
The main advantage of trading using opposite Akkhie Prakarn and Aqua Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akkhie Prakarn position performs unexpectedly, Aqua Public 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 Aqua Public will offset losses from the drop in Aqua Public's long position.| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. Cho Thavee Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ASIA Capital Group |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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