Correlation Between Intouch Holdings and Advanced Info
Can any of the company-specific risk be diversified away by investing in both Intouch Holdings and Advanced Info 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 Intouch Holdings and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intouch Holdings Public and Advanced Info Service, you can compare the effects of market volatilities on Intouch Holdings and Advanced Info 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 Intouch Holdings with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and Advanced Info.
Diversification Opportunities for Intouch Holdings and Advanced Info
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intouch and Advanced is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and Advanced Info go up and down completely randomly.
Pair Corralation between Intouch Holdings and Advanced Info
Assuming the 90 days trading horizon Intouch Holdings is expected to generate 1.23 times less return on investment than Advanced Info. In addition to that, Intouch Holdings is 1.16 times more volatile than Advanced Info Service. It trades about 0.06 of its total potential returns per unit of risk. Advanced Info Service is currently generating about 0.09 per unit of volatility. If you would invest 17,249 in Advanced Info Service on August 30, 2024 and sell it today you would earn a total of 10,851 from holding Advanced Info Service or generate 62.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intouch Holdings Public vs. Advanced Info Service
Performance |
| Timeline |
| Intouch Holdings Public |
| Advanced Info Service |
Intouch Holdings and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intouch Holdings and Advanced Info
The main advantage of trading using opposite Intouch Holdings and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info's long position.| Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. PTT Global Chemical | Intouch Holdings vs. PTT Public | Intouch Holdings vs. CP ALL Public |
| Advanced Info vs. Synnex Public | Advanced Info vs. SVI Public | Advanced Info vs. Interlink Communication Public | Advanced Info vs. SCG PACKAGING PCL NVDR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |