Correlation Between AP Public and Advanced Information
Can any of the company-specific risk be diversified away by investing in both AP Public and Advanced Information 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 AP Public and Advanced Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and Advanced Information Technology, you can compare the effects of market volatilities on AP Public and Advanced Information 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 AP Public with a short position of Advanced Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Advanced Information.
Diversification Opportunities for AP Public and Advanced Information
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AP Public and Advanced is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Advanced Information Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Information and AP Public 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 AP Public are associated (or correlated) with Advanced Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Information has no effect on the direction of AP Public i.e., AP Public and Advanced Information go up and down completely randomly.
Pair Corralation between AP Public and Advanced Information
Assuming the 90 days horizon AP Public is expected to under-perform the Advanced Information. But the stock apears to be less risky and, when comparing its historical volatility, AP Public is 1.28 times less risky than Advanced Information. The stock trades about -0.13 of its potential returns per unit of risk. The Advanced Information Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Advanced Information Technology on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Advanced Information Technology or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Advanced Information Technolog
Performance |
| Timeline |
| AP Public |
| Advanced Information |
AP Public and Advanced Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Advanced Information
The main advantage of trading using opposite AP Public and Advanced Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Advanced Information 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 Advanced Information will offset losses from the drop in Advanced Information's long position.| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
| Advanced Information vs. AP Public | Advanced Information vs. Jasmine International Public | Advanced Information vs. Asia Plus Group | Advanced Information vs. Bangchak 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |