Correlation Between ARIP Public and Akkhie Prakarn
Can any of the company-specific risk be diversified away by investing in both ARIP Public 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 ARIP Public and Akkhie Prakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARIP Public and Akkhie Prakarn Public, you can compare the effects of market volatilities on ARIP Public 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 ARIP Public with a short position of Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARIP Public and Akkhie Prakarn.
Diversification Opportunities for ARIP Public and Akkhie Prakarn
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ARIP and Akkhie is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ARIP 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 ARIP 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 ARIP 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 ARIP Public i.e., ARIP Public and Akkhie Prakarn go up and down completely randomly.
Pair Corralation between ARIP Public and Akkhie Prakarn
Assuming the 90 days trading horizon ARIP Public is expected to generate 0.79 times more return on investment than Akkhie Prakarn. However, ARIP Public is 1.27 times less risky than Akkhie Prakarn. It trades about -0.13 of its potential returns per unit of risk. Akkhie Prakarn Public is currently generating about -0.26 per unit of risk. If you would invest 64.00 in ARIP Public on August 29, 2024 and sell it today you would lose (6.00) from holding ARIP Public or give up 9.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARIP Public vs. Akkhie Prakarn Public
Performance |
| Timeline |
| ARIP Public |
| Akkhie Prakarn Public |
ARIP Public and Akkhie Prakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARIP Public and Akkhie Prakarn
The main advantage of trading using opposite ARIP Public and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARIP Public 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.| ARIP Public vs. QTC Energy Public | ARIP Public vs. Premier Technology Public | ARIP Public vs. Sea Oil Public | ARIP Public vs. The Erawan Group |
| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. Cho Thavee Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ASIA Capital 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |