Correlation Between Com7 PCL and Asphere Innovations
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and Asphere Innovations 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 Com7 PCL and Asphere Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and Asphere Innovations Public, you can compare the effects of market volatilities on Com7 PCL and Asphere Innovations 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 Com7 PCL with a short position of Asphere Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and Asphere Innovations.
Diversification Opportunities for Com7 PCL and Asphere Innovations
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Com7 and Asphere is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and Asphere Innovations Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asphere Innovations and Com7 PCL 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 Com7 PCL are associated (or correlated) with Asphere Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asphere Innovations has no effect on the direction of Com7 PCL i.e., Com7 PCL and Asphere Innovations go up and down completely randomly.
Pair Corralation between Com7 PCL and Asphere Innovations
Assuming the 90 days trading horizon Com7 PCL is expected to generate 0.47 times more return on investment than Asphere Innovations. However, Com7 PCL is 2.11 times less risky than Asphere Innovations. It trades about -0.25 of its potential returns per unit of risk. Asphere Innovations Public is currently generating about -0.12 per unit of risk. If you would invest 2,750 in Com7 PCL on November 4, 2024 and sell it today you would lose (550.00) from holding Com7 PCL or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com7 PCL vs. Asphere Innovations Public
Performance |
| Timeline |
| Com7 PCL |
| Asphere Innovations |
Com7 PCL and Asphere Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and Asphere Innovations
The main advantage of trading using opposite Com7 PCL and Asphere Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, Asphere Innovations 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 Asphere Innovations will offset losses from the drop in Asphere Innovations' long position.| Com7 PCL vs. CP ALL Public | Com7 PCL vs. Home Product Center | Com7 PCL vs. Minor International Public | Com7 PCL vs. Bangkok Dusit Medical |
| Asphere Innovations vs. Bangkok Bank Public | Asphere Innovations vs. Kasikornbank Public | Asphere Innovations vs. Kasikornbank Public | Asphere Innovations vs. Krung Thai Bank |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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