Correlation Between Namwiwat Medical and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Namwiwat Medical 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 Namwiwat Medical and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namwiwat Medical and AAPICO Hitech Public, you can compare the effects of market volatilities on Namwiwat Medical 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 Namwiwat Medical with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namwiwat Medical and AAPICO Hitech.
Diversification Opportunities for Namwiwat Medical and AAPICO Hitech
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Namwiwat and AAPICO is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Namwiwat Medical 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 Namwiwat Medical 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 Namwiwat Medical 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 Namwiwat Medical i.e., Namwiwat Medical and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Namwiwat Medical and AAPICO Hitech
Assuming the 90 days trading horizon Namwiwat Medical is expected to under-perform the AAPICO Hitech. But the stock apears to be less risky and, when comparing its historical volatility, Namwiwat Medical is 1.78 times less risky than AAPICO Hitech. The stock trades about -0.19 of its potential returns per unit of risk. The AAPICO Hitech Public is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,430 in AAPICO Hitech Public on November 27, 2024 and sell it today you would lose (40.00) from holding AAPICO Hitech Public or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namwiwat Medical vs. AAPICO Hitech Public
Performance |
| Timeline |
| Namwiwat Medical |
| AAPICO Hitech Public |
Namwiwat Medical and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namwiwat Medical and AAPICO Hitech
The main advantage of trading using opposite Namwiwat Medical and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namwiwat Medical 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.| Namwiwat Medical vs. Chularat Hospital Public | Namwiwat Medical vs. Nonthavej Hospital Public | Namwiwat Medical vs. Bhiraj Office Leasehold | Namwiwat Medical vs. Wattanapat Hospital Trang |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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