Correlation Between Asia Medical and Somboon Advance
Can any of the company-specific risk be diversified away by investing in both Asia Medical and Somboon Advance 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 Somboon Advance 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 Somboon Advance Technology, you can compare the effects of market volatilities on Asia Medical and Somboon Advance 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 Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and Somboon Advance.
Diversification Opportunities for Asia Medical and Somboon Advance
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Somboon is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech 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 Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of Asia Medical i.e., Asia Medical and Somboon Advance go up and down completely randomly.
Pair Corralation between Asia Medical and Somboon Advance
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to generate 3.24 times more return on investment than Somboon Advance. However, Asia Medical is 3.24 times more volatile than Somboon Advance Technology. It trades about 0.09 of its potential returns per unit of risk. Somboon Advance Technology is currently generating about -0.48 per unit of risk. If you would invest 135.00 in Asia Medical Agricultural on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Asia Medical Agricultural or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. Somboon Advance Technology
Performance |
| Timeline |
| Asia Medical Agricultural |
| Somboon Advance Tech |
Asia Medical and Somboon Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and Somboon Advance
The main advantage of trading using opposite Asia Medical and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, Somboon Advance 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 Somboon Advance will offset losses from the drop in Somboon Advance'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 |
| Somboon Advance vs. AAPICO Hitech Public | Somboon Advance vs. Thai Stanley Electric | Somboon Advance vs. Hana Microelectronics Public | Somboon Advance vs. TISCO Financial Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |