Correlation Between Land and Advanced Info
Can any of the company-specific risk be diversified away by investing in both Land 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 Land and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land and Houses and Advanced Info Service, you can compare the effects of market volatilities on Land 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 Land with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land and Advanced Info.
Diversification Opportunities for Land and Advanced Info
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Land and Advanced is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Land and Houses 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 Land 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 Land and Houses 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 Land i.e., Land and Advanced Info go up and down completely randomly.
Pair Corralation between Land and Advanced Info
Assuming the 90 days horizon Land and Houses is expected to generate 39.23 times more return on investment than Advanced Info. However, Land is 39.23 times more volatile than Advanced Info Service. It trades about 0.04 of its potential returns per unit of risk. Advanced Info Service is currently generating about 0.09 per unit of risk. If you would invest 867.00 in Land and Houses on August 29, 2024 and sell it today you would lose (317.00) from holding Land and Houses or give up 36.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Land and Houses vs. Advanced Info Service
Performance |
| Timeline |
| Land and Houses |
| Advanced Info Service |
Land and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land and Advanced Info
The main advantage of trading using opposite Land and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land 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.| Land vs. Eastern Star Real | Land vs. Bangkok Land Public | Land vs. Ananda Development Public | Land vs. Better World Green |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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