Correlation Between BuilderSmart Public and Advanced Info
Can any of the company-specific risk be diversified away by investing in both BuilderSmart Public and Advanced Info 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 BuilderSmart Public and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BuilderSmart Public and Advanced Info Service, you can compare the effects of market volatilities on BuilderSmart Public and Advanced Info 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 BuilderSmart Public with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of BuilderSmart Public and Advanced Info.
Diversification Opportunities for BuilderSmart Public and Advanced Info
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BuilderSmart and Advanced is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding BuilderSmart Public and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and BuilderSmart 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 BuilderSmart Public are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of BuilderSmart Public i.e., BuilderSmart Public and Advanced Info go up and down completely randomly.
Pair Corralation between BuilderSmart Public and Advanced Info
Assuming the 90 days trading horizon BuilderSmart Public is expected to under-perform the Advanced Info. But the stock apears to be less risky and, when comparing its historical volatility, BuilderSmart Public is 1.84 times less risky than Advanced Info. The stock trades about -0.06 of its potential returns per unit of risk. The Advanced Info Service is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 27,500 in Advanced Info Service on September 1, 2024 and sell it today you would earn a total of 1,000.00 from holding Advanced Info Service or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BuilderSmart Public vs. Advanced Info Service
Performance |
| Timeline |
| BuilderSmart Public |
| Advanced Info Service |
BuilderSmart Public and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BuilderSmart Public and Advanced Info
The main advantage of trading using opposite BuilderSmart Public and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BuilderSmart Public position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info's long position.| BuilderSmart Public vs. Getabec Public | BuilderSmart Public vs. E for L | BuilderSmart Public vs. Salee Colour Public | BuilderSmart Public vs. CI Group Public |
| Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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