Correlation Between Somboon Advance and AddTech Hub
Can any of the company-specific risk be diversified away by investing in both Somboon Advance and AddTech Hub 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 Somboon Advance and AddTech Hub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Somboon Advance Technology and AddTech Hub Public, you can compare the effects of market volatilities on Somboon Advance and AddTech Hub 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 Somboon Advance with a short position of AddTech Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Somboon Advance and AddTech Hub.
Diversification Opportunities for Somboon Advance and AddTech Hub
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Somboon and AddTech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Somboon Advance Technology and AddTech Hub Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AddTech Hub Public and Somboon Advance 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 Somboon Advance Technology are associated (or correlated) with AddTech Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AddTech Hub Public has no effect on the direction of Somboon Advance i.e., Somboon Advance and AddTech Hub go up and down completely randomly.
Pair Corralation between Somboon Advance and AddTech Hub
Assuming the 90 days trading horizon Somboon Advance Technology is expected to generate 3.17 times more return on investment than AddTech Hub. However, Somboon Advance is 3.17 times more volatile than AddTech Hub Public. It trades about 0.17 of its potential returns per unit of risk. AddTech Hub Public is currently generating about -0.23 per unit of risk. If you would invest 1,080 in Somboon Advance Technology on November 28, 2024 and sell it today you would earn a total of 110.00 from holding Somboon Advance Technology or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Somboon Advance Technology vs. AddTech Hub Public
Performance |
| Timeline |
| Somboon Advance Tech |
| AddTech Hub Public |
Somboon Advance and AddTech Hub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Somboon Advance and AddTech Hub
The main advantage of trading using opposite Somboon Advance and AddTech Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Somboon Advance position performs unexpectedly, AddTech Hub 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 AddTech Hub will offset losses from the drop in AddTech Hub's long position.| Somboon Advance vs. AAPICO Hitech Public | Somboon Advance vs. Thai Stanley Electric | Somboon Advance vs. Hana Microelectronics Public | Somboon Advance vs. TISCO Financial Group |
| AddTech Hub vs. Forth Public | AddTech Hub vs. Ditto Public | AddTech Hub vs. II Group Public | AddTech Hub vs. After You 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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