Correlation Between Asia Medical and Interlink Telecom
Can any of the company-specific risk be diversified away by investing in both Asia Medical and Interlink Telecom 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 Asia Medical and Interlink Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Medical Agricultural and Interlink Telecom Public, you can compare the effects of market volatilities on Asia Medical and Interlink Telecom 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 Asia Medical with a short position of Interlink Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and Interlink Telecom.
Diversification Opportunities for Asia Medical and Interlink Telecom
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asia and Interlink is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom Public and Asia Medical 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 Asia Medical Agricultural are associated (or correlated) with Interlink Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of Asia Medical i.e., Asia Medical and Interlink Telecom go up and down completely randomly.
Pair Corralation between Asia Medical and Interlink Telecom
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to under-perform the Interlink Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Asia Medical Agricultural is 1.11 times less risky than Interlink Telecom. The stock trades about -0.04 of its potential returns per unit of risk. The Interlink Telecom Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Interlink Telecom Public on September 2, 2024 and sell it today you would lose (156.00) from holding Interlink Telecom Public or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. Interlink Telecom Public
Performance |
| Timeline |
| Asia Medical Agricultural |
| Interlink Telecom Public |
Asia Medical and Interlink Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and Interlink Telecom
The main advantage of trading using opposite Asia Medical and Interlink Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, Interlink Telecom 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 Interlink Telecom will offset losses from the drop in Interlink Telecom's long position.| Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public | Asia Medical vs. The Erawan Group | Asia Medical vs. Autocorp Holding Public |
| Interlink Telecom vs. Hana Microelectronics Public | Interlink Telecom vs. Ekachai Medical Care | Interlink Telecom vs. Megachem Public | Interlink Telecom 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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