Correlation Between Interhides Public and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Interhides Public 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 Interhides Public and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interhides Public and AAPICO Hitech Public, you can compare the effects of market volatilities on Interhides Public 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 Interhides Public with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interhides Public and AAPICO Hitech.
Diversification Opportunities for Interhides Public and AAPICO Hitech
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Interhides and AAPICO is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Interhides 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 Interhides Public 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 Interhides 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 Interhides Public i.e., Interhides Public and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Interhides Public and AAPICO Hitech
Assuming the 90 days trading horizon Interhides Public is expected to generate 36.32 times more return on investment than AAPICO Hitech. However, Interhides Public is 36.32 times more volatile than AAPICO Hitech Public. It trades about 0.08 of its potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.05 per unit of risk. If you would invest 198.00 in Interhides Public on September 3, 2024 and sell it today you would lose (19.00) from holding Interhides Public or give up 9.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interhides Public vs. AAPICO Hitech Public
Performance |
| Timeline |
| Interhides Public |
| AAPICO Hitech Public |
Interhides Public and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interhides Public and AAPICO Hitech
The main advantage of trading using opposite Interhides Public and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interhides Public 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.| Interhides Public vs. Hwa Fong Rubber | Interhides Public vs. AAPICO Hitech Public | Interhides Public vs. Ichitan Group Public | Interhides Public vs. Hana Microelectronics Public |
| AAPICO Hitech vs. Central Pattana Public | AAPICO Hitech vs. CP ALL Public | AAPICO Hitech vs. Bangkok Dusit Medical | AAPICO Hitech vs. Airports of Thailand |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |