Correlation Between Intermedical Care and AJ Advance
Can any of the company-specific risk be diversified away by investing in both Intermedical Care 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 Intermedical Care and AJ Advance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermedical Care and and AJ Advance Technology, you can compare the effects of market volatilities on Intermedical Care 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 Intermedical Care with a short position of AJ Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermedical Care and AJ Advance.
Diversification Opportunities for Intermedical Care and AJ Advance
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intermedical and AJA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Intermedical Care and 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 Intermedical Care 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 Intermedical Care and 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 Intermedical Care i.e., Intermedical Care and AJ Advance go up and down completely randomly.
Pair Corralation between Intermedical Care and AJ Advance
Assuming the 90 days trading horizon Intermedical Care and is expected to generate 0.24 times more return on investment than AJ Advance. However, Intermedical Care and is 4.19 times less risky than AJ Advance. It trades about -0.46 of its potential returns per unit of risk. AJ Advance Technology is currently generating about -0.17 per unit of risk. If you would invest 478.00 in Intermedical Care and on October 21, 2024 and sell it today you would lose (38.00) from holding Intermedical Care and or give up 7.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermedical Care and vs. AJ Advance Technology
Performance |
| Timeline |
| Intermedical Care |
| AJ Advance Technology |
Intermedical Care and AJ Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermedical Care and AJ Advance
The main advantage of trading using opposite Intermedical Care and AJ Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermedical Care 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.| Intermedical Care vs. Inter Pharma Public | Intermedical Care vs. Ekachai Medical Care | Intermedical Care vs. Humanica Public | Intermedical Care vs. Bangkok Chain Hospital |
| AJ Advance vs. Aqua Public | AJ Advance vs. Advanced Connection | AJ Advance vs. Ekarat Engineering Public | AJ Advance vs. Eternal Energy 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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