Correlation Between Akkhie Prakarn and ARIP Public
Can any of the company-specific risk be diversified away by investing in both Akkhie Prakarn and ARIP 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 ARIP 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 ARIP Public, you can compare the effects of market volatilities on Akkhie Prakarn and ARIP 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 ARIP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akkhie Prakarn and ARIP Public.
Diversification Opportunities for Akkhie Prakarn and ARIP Public
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akkhie and ARIP is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Akkhie Prakarn Public and ARIP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARIP 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 ARIP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARIP Public has no effect on the direction of Akkhie Prakarn i.e., Akkhie Prakarn and ARIP Public go up and down completely randomly.
Pair Corralation between Akkhie Prakarn and ARIP Public
Assuming the 90 days trading horizon Akkhie Prakarn Public is expected to under-perform the ARIP Public. But the stock apears to be less risky and, when comparing its historical volatility, Akkhie Prakarn Public is 2.05 times less risky than ARIP Public. The stock trades about -0.23 of its potential returns per unit of risk. The ARIP Public is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 43.00 in ARIP Public on November 27, 2024 and sell it today you would lose (3.00) from holding ARIP Public or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akkhie Prakarn Public vs. ARIP Public
Performance |
| Timeline |
| Akkhie Prakarn Public |
| ARIP Public |
Akkhie Prakarn and ARIP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akkhie Prakarn and ARIP Public
The main advantage of trading using opposite Akkhie Prakarn and ARIP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akkhie Prakarn position performs unexpectedly, ARIP 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 ARIP Public will offset losses from the drop in ARIP 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. ARIP Public |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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