Correlation Between Haad Thip and AJ Advance
Can any of the company-specific risk be diversified away by investing in both Haad Thip and AJ Advance 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 AJ Advance 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 AJ Advance Technology, you can compare the effects of market volatilities on Haad Thip and AJ Advance 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 AJ Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and AJ Advance.
Diversification Opportunities for Haad Thip and AJ Advance
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haad and AJA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and AJ Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ Advance Technology 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 AJ Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ Advance Technology has no effect on the direction of Haad Thip i.e., Haad Thip and AJ Advance go up and down completely randomly.
Pair Corralation between Haad Thip and AJ Advance
Assuming the 90 days trading horizon Haad Thip is expected to generate 77.0 times less return on investment than AJ Advance. But when comparing it to its historical volatility, Haad Thip Public is 4.71 times less risky than AJ Advance. It trades about 0.01 of its potential returns per unit of risk. AJ Advance Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 14.00 in AJ Advance Technology on September 19, 2024 and sell it today you would earn a total of 1.00 from holding AJ Advance Technology or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. AJ Advance Technology
Performance |
| Timeline |
| Haad Thip Public |
| AJ Advance Technology |
Haad Thip and AJ Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and AJ Advance
The main advantage of trading using opposite Haad Thip and AJ Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, AJ Advance 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 AJ Advance will offset losses from the drop in AJ Advance's long position.| Haad Thip vs. GFPT Public | Haad Thip vs. Dynasty Ceramic Public | Haad Thip vs. The Erawan Group | Haad Thip vs. Jay Mart Public |
| AJ Advance vs. AAPICO Hitech Public | AJ Advance vs. Haad Thip Public | AJ Advance vs. Italian Thai Development 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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