Correlation Between Amata Summit and Digital Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Amata Summit and Digital Telecommunicatio 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 Amata Summit and Digital Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amata Summit Growth and Digital Telecommunications Infrastructure, you can compare the effects of market volatilities on Amata Summit and Digital Telecommunicatio 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 Amata Summit with a short position of Digital Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amata Summit and Digital Telecommunicatio.
Diversification Opportunities for Amata Summit and Digital Telecommunicatio
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amata and Digital is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amata Summit Growth and Digital Telecommunications Inf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Telecommunicatio and Amata Summit 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 Amata Summit Growth are associated (or correlated) with Digital Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Telecommunicatio has no effect on the direction of Amata Summit i.e., Amata Summit and Digital Telecommunicatio go up and down completely randomly.
Pair Corralation between Amata Summit and Digital Telecommunicatio
Assuming the 90 days trading horizon Amata Summit Growth is expected to generate 0.87 times more return on investment than Digital Telecommunicatio. However, Amata Summit Growth is 1.15 times less risky than Digital Telecommunicatio. It trades about 0.23 of its potential returns per unit of risk. Digital Telecommunications Infrastructure is currently generating about -0.25 per unit of risk. If you would invest 644.00 in Amata Summit Growth on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Amata Summit Growth or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amata Summit Growth vs. Digital Telecommunications Inf
Performance |
| Timeline |
| Amata Summit Growth |
| Digital Telecommunicatio |
Amata Summit and Digital Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amata Summit and Digital Telecommunicatio
The main advantage of trading using opposite Amata Summit and Digital Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amata Summit position performs unexpectedly, Digital Telecommunicatio 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 Digital Telecommunicatio will offset losses from the drop in Digital Telecommunicatio's long position.| Amata Summit vs. WHA Premium Growth | Amata Summit vs. AIM Industrial Growth | Amata Summit vs. Bangkok Commercial Property | Amata Summit vs. Quality Houses Property |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |