Correlation Between Berli Jucker and AJ Plast
Can any of the company-specific risk be diversified away by investing in both Berli Jucker and AJ Plast 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 Berli Jucker and AJ Plast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berli Jucker Public and AJ Plast Public, you can compare the effects of market volatilities on Berli Jucker and AJ Plast 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 Berli Jucker with a short position of AJ Plast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berli Jucker and AJ Plast.
Diversification Opportunities for Berli Jucker and AJ Plast
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Berli and AJ Plast is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Berli Jucker Public and AJ Plast Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ Plast Public and Berli Jucker 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 Berli Jucker Public are associated (or correlated) with AJ Plast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ Plast Public has no effect on the direction of Berli Jucker i.e., Berli Jucker and AJ Plast go up and down completely randomly.
Pair Corralation between Berli Jucker and AJ Plast
Assuming the 90 days trading horizon Berli Jucker Public is expected to generate 1.31 times more return on investment than AJ Plast. However, Berli Jucker is 1.31 times more volatile than AJ Plast Public. It trades about -0.06 of its potential returns per unit of risk. AJ Plast Public is currently generating about -0.21 per unit of risk. If you would invest 2,410 in Berli Jucker Public on September 1, 2024 and sell it today you would lose (50.00) from holding Berli Jucker Public or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berli Jucker Public vs. AJ Plast Public
Performance |
| Timeline |
| Berli Jucker Public |
| AJ Plast Public |
Berli Jucker and AJ Plast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berli Jucker and AJ Plast
The main advantage of trading using opposite Berli Jucker and AJ Plast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berli Jucker position performs unexpectedly, AJ Plast 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 AJ Plast will offset losses from the drop in AJ Plast's long position.| Berli Jucker vs. CP ALL Public | Berli Jucker vs. Bangkok Dusit Medical | Berli Jucker vs. BTS Group Holdings | Berli Jucker vs. Central Pattana Public |
| AJ Plast vs. AAPICO Hitech Public | AJ Plast vs. AP Public | AJ Plast vs. Aikchol Hospital Public | AJ Plast vs. Bank of Ayudhya |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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