Correlation Between Ananda Development and Akkhie Prakarn
Can any of the company-specific risk be diversified away by investing in both Ananda Development and Akkhie Prakarn 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 Ananda Development and Akkhie Prakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ananda Development Public and Akkhie Prakarn Public, you can compare the effects of market volatilities on Ananda Development and Akkhie Prakarn 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 Ananda Development with a short position of Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ananda Development and Akkhie Prakarn.
Diversification Opportunities for Ananda Development and Akkhie Prakarn
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ananda and Akkhie is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ananda Development Public and Akkhie Prakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akkhie Prakarn Public and Ananda Development 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 Ananda Development Public are associated (or correlated) with Akkhie Prakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akkhie Prakarn Public has no effect on the direction of Ananda Development i.e., Ananda Development and Akkhie Prakarn go up and down completely randomly.
Pair Corralation between Ananda Development and Akkhie Prakarn
Assuming the 90 days trading horizon Ananda Development Public is expected to generate 0.4 times more return on investment than Akkhie Prakarn. However, Ananda Development Public is 2.53 times less risky than Akkhie Prakarn. It trades about -0.21 of its potential returns per unit of risk. Akkhie Prakarn Public is currently generating about -0.23 per unit of risk. If you would invest 73.00 in Ananda Development Public on August 30, 2024 and sell it today you would lose (5.00) from holding Ananda Development Public or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ananda Development Public vs. Akkhie Prakarn Public
Performance |
| Timeline |
| Ananda Development Public |
| Akkhie Prakarn Public |
Ananda Development and Akkhie Prakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ananda Development and Akkhie Prakarn
The main advantage of trading using opposite Ananda Development and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ananda Development position performs unexpectedly, Akkhie Prakarn 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 Akkhie Prakarn will offset losses from the drop in Akkhie Prakarn's long position.| Ananda Development vs. AP Public | Ananda Development vs. Siri Prime Office | Ananda Development vs. Quality Houses Public | Ananda Development vs. LPN Development Public |
| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. Cho Thavee Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ARIP 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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