Correlation Between Gratitude Infinite and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Gratitude Infinite 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 Gratitude Infinite and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gratitude Infinite Public and AAPICO Hitech Public, you can compare the effects of market volatilities on Gratitude Infinite 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 Gratitude Infinite with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gratitude Infinite and AAPICO Hitech.
Diversification Opportunities for Gratitude Infinite and AAPICO Hitech
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gratitude and AAPICO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gratitude Infinite Public 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 Gratitude Infinite 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 Gratitude Infinite Public 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 Gratitude Infinite i.e., Gratitude Infinite and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Gratitude Infinite and AAPICO Hitech
Assuming the 90 days trading horizon Gratitude Infinite Public is expected to under-perform the AAPICO Hitech. In addition to that, Gratitude Infinite is 1.34 times more volatile than AAPICO Hitech Public. It trades about -0.42 of its total potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.19 per unit of volatility. If you would invest 2,040 in AAPICO Hitech Public on August 29, 2024 and sell it today you would lose (220.00) from holding AAPICO Hitech Public or give up 10.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gratitude Infinite Public vs. AAPICO Hitech Public
Performance |
| Timeline |
| Gratitude Infinite Public |
| AAPICO Hitech Public |
Gratitude Infinite and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gratitude Infinite and AAPICO Hitech
The main advantage of trading using opposite Gratitude Infinite and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gratitude Infinite 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.| Gratitude Infinite vs. MCS Steel Public | Gratitude Infinite vs. Asia Plus Group | Gratitude Infinite vs. Lalin Property Public | Gratitude Infinite vs. Lam Soon Public |
| AAPICO Hitech vs. Delta Electronics Public | AAPICO Hitech vs. Namwiwat Medical | AAPICO Hitech vs. Silicon Craft Technology | AAPICO Hitech vs. Winnergy Medical 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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