Correlation Between CSP Steel and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both CSP Steel and AAPICO Hitech 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 CSP Steel and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSP Steel Center and AAPICO Hitech Public, you can compare the effects of market volatilities on CSP Steel and AAPICO Hitech 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 CSP Steel with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSP Steel and AAPICO Hitech.
Diversification Opportunities for CSP Steel and AAPICO Hitech
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSP and AAPICO is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CSP Steel Center and AAPICO Hitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPICO Hitech Public and CSP Steel 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 CSP Steel Center are associated (or correlated) with AAPICO Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPICO Hitech Public has no effect on the direction of CSP Steel i.e., CSP Steel and AAPICO Hitech go up and down completely randomly.
Pair Corralation between CSP Steel and AAPICO Hitech
Assuming the 90 days trading horizon CSP Steel Center is expected to generate 19.48 times more return on investment than AAPICO Hitech. However, CSP Steel is 19.48 times more volatile than AAPICO Hitech Public. It trades about 0.04 of its potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.03 per unit of risk. If you would invest 117.00 in CSP Steel Center on September 1, 2024 and sell it today you would lose (59.00) from holding CSP Steel Center or give up 50.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSP Steel Center vs. AAPICO Hitech Public
Performance |
| Timeline |
| CSP Steel Center |
| AAPICO Hitech Public |
CSP Steel and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSP Steel and AAPICO Hitech
The main advantage of trading using opposite CSP Steel and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSP Steel position performs unexpectedly, AAPICO Hitech 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 AAPICO Hitech will offset losses from the drop in AAPICO Hitech's long position.| CSP Steel vs. AAPICO Hitech Public | CSP Steel vs. AP Public | CSP Steel vs. Aikchol Hospital Public | CSP Steel vs. Bank of Ayudhya |
| AAPICO Hitech vs. TRC Construction Public | AAPICO Hitech vs. Bangkok Expressway and | AAPICO Hitech vs. Lohakit Metal Public | AAPICO Hitech vs. Gunkul Engineering 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stocks Directory Find actively traded stocks across global markets |