Correlation Between Ama Marine and Information
Can any of the company-specific risk be diversified away by investing in both Ama Marine and Information 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 Ama Marine and Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ama Marine Public and Information and Communication, you can compare the effects of market volatilities on Ama Marine and Information 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 Ama Marine with a short position of Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ama Marine and Information.
Diversification Opportunities for Ama Marine and Information
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ama and Information is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ama Marine Public and Information and Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information and Comm and Ama Marine 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 Ama Marine Public are associated (or correlated) with Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information and Comm has no effect on the direction of Ama Marine i.e., Ama Marine and Information go up and down completely randomly.
Pair Corralation between Ama Marine and Information
Assuming the 90 days trading horizon Ama Marine Public is expected to under-perform the Information. But the stock apears to be less risky and, when comparing its historical volatility, Ama Marine Public is 2.18 times less risky than Information. The stock trades about -0.2 of its potential returns per unit of risk. The Information and Communication is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 227.00 in Information and Communication on August 25, 2024 and sell it today you would lose (3.00) from holding Information and Communication or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ama Marine Public vs. Information and Communication
Performance |
| Timeline |
| Ama Marine Public |
| Information and Comm |
Ama Marine and Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ama Marine and Information
The main advantage of trading using opposite Ama Marine and Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ama Marine position performs unexpectedly, Information 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 Information will offset losses from the drop in Information's long position.| Ama Marine vs. Arrow Syndicate Public | Ama Marine vs. After You Public | Ama Marine vs. Union Auction Public | Ama Marine vs. Akkhie Prakarn Public |
| Information vs. Hana Microelectronics Public | Information vs. Ekachai Medical Care | Information vs. Megachem Public | Information vs. Diamond Building Products |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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