Correlation Between Asia Plus and Syntec Construction
Can any of the company-specific risk be diversified away by investing in both Asia Plus and Syntec Construction 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 Plus and Syntec Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Plus Group and Syntec Construction Public, you can compare the effects of market volatilities on Asia Plus and Syntec Construction 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 Plus with a short position of Syntec Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Plus and Syntec Construction.
Diversification Opportunities for Asia Plus and Syntec Construction
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asia and Syntec is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Asia Plus Group and Syntec Construction Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntec Construction and Asia Plus 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 Plus Group are associated (or correlated) with Syntec Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntec Construction has no effect on the direction of Asia Plus i.e., Asia Plus and Syntec Construction go up and down completely randomly.
Pair Corralation between Asia Plus and Syntec Construction
Assuming the 90 days trading horizon Asia Plus Group is expected to generate 0.3 times more return on investment than Syntec Construction. However, Asia Plus Group is 3.31 times less risky than Syntec Construction. It trades about -0.06 of its potential returns per unit of risk. Syntec Construction Public is currently generating about -0.06 per unit of risk. If you would invest 230.00 in Asia Plus Group on November 27, 2024 and sell it today you would lose (2.00) from holding Asia Plus Group or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Plus Group vs. Syntec Construction Public
Performance |
| Timeline |
| Asia Plus Group |
| Syntec Construction |
Asia Plus and Syntec Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Plus and Syntec Construction
The main advantage of trading using opposite Asia Plus and Syntec Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Plus position performs unexpectedly, Syntec Construction 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 Syntec Construction will offset losses from the drop in Syntec Construction's long position.| Asia Plus vs. KGI Securities Public | Asia Plus vs. Bangkok Bank Public | Asia Plus vs. Land and Houses | Asia Plus vs. Italian Thai Development Public |
| Syntec Construction vs. Tipco Foods Public | Syntec Construction vs. STPI Public | Syntec Construction vs. Seafco Public | Syntec Construction vs. Tipco Asphalt 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |