Correlation Between Haad Thip and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Haad Thip 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 Haad Thip and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haad Thip Public and AAPICO Hitech Public, you can compare the effects of market volatilities on Haad Thip 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 Haad Thip with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and AAPICO Hitech.
Diversification Opportunities for Haad Thip and AAPICO Hitech
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Haad and AAPICO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip 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 Haad Thip 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 Haad Thip 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 Haad Thip i.e., Haad Thip and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Haad Thip and AAPICO Hitech
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.56 times more return on investment than AAPICO Hitech. However, Haad Thip Public is 1.77 times less risky than AAPICO Hitech. It trades about -0.13 of its potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.19 per unit of risk. If you would invest 1,700 in Haad Thip Public on August 28, 2024 and sell it today you would lose (70.00) from holding Haad Thip Public or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. AAPICO Hitech Public
Performance |
| Timeline |
| Haad Thip Public |
| AAPICO Hitech Public |
Haad Thip and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and AAPICO Hitech
The main advantage of trading using opposite Haad Thip and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip 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.| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group Public |
| AAPICO Hitech vs. SCB X Public | AAPICO Hitech vs. Kasikornbank Public | AAPICO Hitech vs. PTT Public | AAPICO Hitech vs. Kasikornbank 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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