Correlation Between Asset World and AP Public
Can any of the company-specific risk be diversified away by investing in both Asset World and AP Public 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 Asset World and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asset World Corp and AP Public, you can compare the effects of market volatilities on Asset World and AP Public 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 Asset World with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asset World and AP Public.
Diversification Opportunities for Asset World and AP Public
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asset and AP Public is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Asset World Corp and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Asset World 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 Asset World Corp are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Asset World i.e., Asset World and AP Public go up and down completely randomly.
Pair Corralation between Asset World and AP Public
Assuming the 90 days trading horizon Asset World is expected to generate 14.7 times less return on investment than AP Public. But when comparing it to its historical volatility, Asset World Corp is 1.68 times less risky than AP Public. It trades about 0.03 of its potential returns per unit of risk. AP Public is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 780.00 in AP Public on November 28, 2024 and sell it today you would earn a total of 110.00 from holding AP Public or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asset World Corp vs. AP Public
Performance |
| Timeline |
| Asset World Corp |
| AP Public |
Asset World and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asset World and AP Public
The main advantage of trading using opposite Asset World and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asset World position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.| Asset World vs. Central Retail | Asset World vs. Gulf Energy Development | Asset World vs. BTS Group Holdings | Asset World vs. Bangkok Expressway and |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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