Correlation Between Southern Concrete and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Southern Concrete 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 Southern Concrete and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Concrete Pile and AAPICO Hitech Public, you can compare the effects of market volatilities on Southern Concrete 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 Southern Concrete with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Concrete and AAPICO Hitech.
Diversification Opportunities for Southern Concrete and AAPICO Hitech
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Southern and AAPICO is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Southern Concrete Pile 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 Southern Concrete 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 Southern Concrete Pile 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 Southern Concrete i.e., Southern Concrete and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Southern Concrete and AAPICO Hitech
Assuming the 90 days trading horizon Southern Concrete Pile is expected to generate 0.8 times more return on investment than AAPICO Hitech. However, Southern Concrete Pile is 1.25 times less risky than AAPICO Hitech. It trades about 0.13 of its potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.18 per unit of risk. If you would invest 640.00 in Southern Concrete Pile on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Southern Concrete Pile or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Southern Concrete Pile vs. AAPICO Hitech Public
Performance |
| Timeline |
| Southern Concrete Pile |
| AAPICO Hitech Public |
Southern Concrete and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Concrete and AAPICO Hitech
The main advantage of trading using opposite Southern Concrete and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Concrete 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.| Southern Concrete vs. AAPICO Hitech Public | Southern Concrete vs. AP Public | Southern Concrete vs. Aikchol Hospital Public | Southern Concrete vs. Bank of Ayudhya |
| AAPICO Hitech vs. TRC Construction Public | AAPICO Hitech vs. Bangkok Expressway and | AAPICO Hitech vs. Lohakit Metal Public | AAPICO Hitech vs. Gunkul Engineering 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |