Correlation Between Polyplex Public and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Polyplex Public 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 Polyplex Public and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polyplex Public and AAPICO Hitech Public, you can compare the effects of market volatilities on Polyplex Public 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 Polyplex Public with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polyplex Public and AAPICO Hitech.
Diversification Opportunities for Polyplex Public and AAPICO Hitech
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Polyplex and AAPICO is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Polyplex Public 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 Polyplex 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 Polyplex Public 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 Polyplex Public i.e., Polyplex Public and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Polyplex Public and AAPICO Hitech
Assuming the 90 days trading horizon Polyplex Public is expected to under-perform the AAPICO Hitech. In addition to that, Polyplex Public is 1.14 times more volatile than AAPICO Hitech Public. It trades about -0.03 of its total potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.03 per unit of volatility. If you would invest 2,994 in AAPICO Hitech Public on September 3, 2024 and sell it today you would lose (1,204) from holding AAPICO Hitech Public or give up 40.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polyplex Public vs. AAPICO Hitech Public
Performance |
| Timeline |
| Polyplex Public |
| AAPICO Hitech Public |
Polyplex Public and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polyplex Public and AAPICO Hitech
The main advantage of trading using opposite Polyplex Public and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polyplex Public 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.| Polyplex Public vs. PTT Public | Polyplex Public vs. PTT Exploration and | Polyplex Public vs. The Siam Cement | Polyplex Public vs. CP ALL Public |
| AAPICO Hitech vs. Central Pattana Public | AAPICO Hitech vs. CP ALL Public | AAPICO Hitech vs. Bangkok Dusit Medical | AAPICO Hitech vs. Airports of Thailand |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |