Correlation Between Pico Public and Asian Sea
Can any of the company-specific risk be diversified away by investing in both Pico Public and Asian Sea 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 Pico Public and Asian Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pico Public and Asian Sea, you can compare the effects of market volatilities on Pico Public and Asian Sea 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 Pico Public with a short position of Asian Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pico Public and Asian Sea.
Diversification Opportunities for Pico Public and Asian Sea
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pico and Asian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pico Public and Asian Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Sea and Pico Public 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 Pico Public are associated (or correlated) with Asian Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Sea has no effect on the direction of Pico Public i.e., Pico Public and Asian Sea go up and down completely randomly.
Pair Corralation between Pico Public and Asian Sea
Assuming the 90 days trading horizon Pico Public is expected to generate 26.46 times more return on investment than Asian Sea. However, Pico Public is 26.46 times more volatile than Asian Sea. It trades about 0.07 of its potential returns per unit of risk. Asian Sea is currently generating about 0.08 per unit of risk. If you would invest 492.00 in Pico Public on August 25, 2024 and sell it today you would lose (134.00) from holding Pico Public or give up 27.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
Pico Public vs. Asian Sea
Performance |
| Timeline |
| Pico Public |
| Asian Sea |
Pico Public and Asian Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pico Public and Asian Sea
The main advantage of trading using opposite Pico Public and Asian Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pico Public position performs unexpectedly, Asian Sea 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 Asian Sea will offset losses from the drop in Asian Sea's long position.| Pico Public vs. Prodigy Public | Pico Public vs. Panjawattana Plastic Public | Pico Public vs. Phol Dhanya Public | Pico Public vs. Moong Pattana International |
| Asian Sea vs. GFPT Public | Asian Sea vs. Carabao Group Public | Asian Sea vs. Thai Union Group | Asian Sea vs. Agripure Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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