Correlation Between Allianz Ayudhya and Boutique Newcity
Can any of the company-specific risk be diversified away by investing in both Allianz Ayudhya and Boutique Newcity 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 Allianz Ayudhya and Boutique Newcity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz Ayudhya Capital and Boutique Newcity Public, you can compare the effects of market volatilities on Allianz Ayudhya and Boutique Newcity 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 Allianz Ayudhya with a short position of Boutique Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Ayudhya and Boutique Newcity.
Diversification Opportunities for Allianz Ayudhya and Boutique Newcity
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianz and Boutique is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Ayudhya Capital and Boutique Newcity Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boutique Newcity Public and Allianz Ayudhya 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 Allianz Ayudhya Capital are associated (or correlated) with Boutique Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boutique Newcity Public has no effect on the direction of Allianz Ayudhya i.e., Allianz Ayudhya and Boutique Newcity go up and down completely randomly.
Pair Corralation between Allianz Ayudhya and Boutique Newcity
Assuming the 90 days trading horizon Allianz Ayudhya Capital is expected to generate 0.15 times more return on investment than Boutique Newcity. However, Allianz Ayudhya Capital is 6.5 times less risky than Boutique Newcity. It trades about -0.14 of its potential returns per unit of risk. Boutique Newcity Public is currently generating about -0.08 per unit of risk. If you would invest 3,150 in Allianz Ayudhya Capital on November 6, 2024 and sell it today you would lose (50.00) from holding Allianz Ayudhya Capital or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Allianz Ayudhya Capital vs. Boutique Newcity Public
Performance |
| Timeline |
| Allianz Ayudhya Capital |
| Boutique Newcity Public |
Allianz Ayudhya and Boutique Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Ayudhya and Boutique Newcity
The main advantage of trading using opposite Allianz Ayudhya and Boutique Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Ayudhya position performs unexpectedly, Boutique Newcity 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 Boutique Newcity will offset losses from the drop in Boutique Newcity's long position.| Allianz Ayudhya vs. Bank of Ayudhya | Allianz Ayudhya vs. Bangkok Aviation Fuel | Allianz Ayudhya vs. AP Public | Allianz Ayudhya vs. BEC World Public |
| Boutique Newcity vs. Asia Fiber Public | Boutique Newcity vs. AJ Plast Public | Boutique Newcity vs. Castle Peak Holdings | Boutique Newcity vs. CPL Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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