Correlation Between Interlink Telecom and Asia Medical
Can any of the company-specific risk be diversified away by investing in both Interlink Telecom and Asia Medical 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 Interlink Telecom and Asia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlink Telecom Public and Asia Medical Agricultural, you can compare the effects of market volatilities on Interlink Telecom and Asia Medical 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 Interlink Telecom with a short position of Asia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlink Telecom and Asia Medical.
Diversification Opportunities for Interlink Telecom and Asia Medical
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Interlink and Asia is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Telecom Public and Asia Medical Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Medical Agricultural and Interlink Telecom 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 Interlink Telecom Public are associated (or correlated) with Asia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Medical Agricultural has no effect on the direction of Interlink Telecom i.e., Interlink Telecom and Asia Medical go up and down completely randomly.
Pair Corralation between Interlink Telecom and Asia Medical
Assuming the 90 days trading horizon Interlink Telecom Public is expected to generate 1.11 times more return on investment than Asia Medical. However, Interlink Telecom is 1.11 times more volatile than Asia Medical Agricultural. It trades about -0.03 of its potential returns per unit of risk. Asia Medical Agricultural is currently generating about -0.04 per unit of risk. If you would invest 364.00 in Interlink Telecom Public on September 2, 2024 and sell it today you would lose (156.00) from holding Interlink Telecom Public or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlink Telecom Public vs. Asia Medical Agricultural
Performance |
| Timeline |
| Interlink Telecom Public |
| Asia Medical Agricultural |
Interlink Telecom and Asia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlink Telecom and Asia Medical
The main advantage of trading using opposite Interlink Telecom and Asia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Telecom position performs unexpectedly, Asia Medical 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 Asia Medical will offset losses from the drop in Asia Medical's long position.| Interlink Telecom vs. Hana Microelectronics Public | Interlink Telecom vs. Ekachai Medical Care | Interlink Telecom vs. Megachem Public | Interlink Telecom vs. Diamond Building Products |
| Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public | Asia Medical vs. The Erawan Group | Asia Medical vs. Autocorp Holding 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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