Correlation Between Amanah Leasing and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and AAPICO Hitech 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 Amanah Leasing and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amanah Leasing Public and AAPICO Hitech Public, you can compare the effects of market volatilities on Amanah Leasing and AAPICO Hitech 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 Amanah Leasing with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and AAPICO Hitech.
Diversification Opportunities for Amanah Leasing and AAPICO Hitech
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amanah and AAPICO is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and AAPICO Hitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPICO Hitech Public and Amanah Leasing 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 Amanah Leasing Public are associated (or correlated) with AAPICO Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPICO Hitech Public has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Amanah Leasing and AAPICO Hitech
Assuming the 90 days trading horizon Amanah Leasing Public is expected to under-perform the AAPICO Hitech. But the stock apears to be less risky and, when comparing its historical volatility, Amanah Leasing Public is 1.07 times less risky than AAPICO Hitech. The stock trades about -0.28 of its potential returns per unit of risk. The AAPICO Hitech Public is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,090 in AAPICO Hitech Public on August 28, 2024 and sell it today you would lose (270.00) from holding AAPICO Hitech Public or give up 12.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanah Leasing Public vs. AAPICO Hitech Public
Performance |
| Timeline |
| Amanah Leasing Public |
| AAPICO Hitech Public |
Amanah Leasing and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and AAPICO Hitech
The main advantage of trading using opposite Amanah Leasing and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, AAPICO Hitech 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 AAPICO Hitech will offset losses from the drop in AAPICO Hitech's long position.| Amanah Leasing vs. Srisawad Power 1979 | Amanah Leasing vs. JMT Network Services | Amanah Leasing vs. AEON Thana Sinsap | Amanah Leasing vs. Ratchthani Leasing Public |
| AAPICO Hitech vs. PINTHONG INDUSTRIAL PARK | AAPICO Hitech vs. Porn Prom Metal | AAPICO Hitech vs. Warrix Sport PCL | AAPICO Hitech vs. Quality Construction 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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