Correlation Between Amanah Leasing and Allianz Ayudhya
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and Allianz Ayudhya 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 Allianz Ayudhya 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 Allianz Ayudhya Capital, you can compare the effects of market volatilities on Amanah Leasing and Allianz Ayudhya 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 Allianz Ayudhya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Allianz Ayudhya.
Diversification Opportunities for Amanah Leasing and Allianz Ayudhya
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amanah and Allianz is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and Allianz Ayudhya Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Ayudhya Capital 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 Allianz Ayudhya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Ayudhya Capital has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and Allianz Ayudhya go up and down completely randomly.
Pair Corralation between Amanah Leasing and Allianz Ayudhya
Assuming the 90 days trading horizon Amanah Leasing Public is expected to under-perform the Allianz Ayudhya. In addition to that, Amanah Leasing is 2.64 times more volatile than Allianz Ayudhya Capital. It trades about -0.5 of its total potential returns per unit of risk. Allianz Ayudhya Capital is currently generating about -0.04 per unit of volatility. If you would invest 3,250 in Allianz Ayudhya Capital on August 28, 2024 and sell it today you would lose (25.00) from holding Allianz Ayudhya Capital or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanah Leasing Public vs. Allianz Ayudhya Capital
Performance |
| Timeline |
| Amanah Leasing Public |
| Allianz Ayudhya Capital |
Amanah Leasing and Allianz Ayudhya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Allianz Ayudhya
The main advantage of trading using opposite Amanah Leasing and Allianz Ayudhya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, Allianz Ayudhya 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 Allianz Ayudhya will offset losses from the drop in Allianz Ayudhya's long position.| Amanah Leasing vs. Thai Energy Storage | Amanah Leasing vs. Royal Orchid Hotel | Amanah Leasing vs. Grand Canal Land | Amanah Leasing vs. PRG Public |
| Allianz Ayudhya vs. Thai Energy Storage | Allianz Ayudhya vs. Royal Orchid Hotel | Allianz Ayudhya vs. Grand Canal Land | Allianz Ayudhya vs. PRG Public |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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