Correlation Between SRI TRANG and Advanced Info
Can any of the company-specific risk be diversified away by investing in both SRI TRANG and Advanced Info 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 SRI TRANG and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SRI TRANG GLOVES and Advanced Info Service, you can compare the effects of market volatilities on SRI TRANG and Advanced Info 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 SRI TRANG with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of SRI TRANG and Advanced Info.
Diversification Opportunities for SRI TRANG and Advanced Info
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SRI and Advanced is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SRI TRANG GLOVES and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and SRI TRANG 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 SRI TRANG GLOVES are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of SRI TRANG i.e., SRI TRANG and Advanced Info go up and down completely randomly.
Pair Corralation between SRI TRANG and Advanced Info
Assuming the 90 days trading horizon SRI TRANG is expected to generate 1.76 times less return on investment than Advanced Info. In addition to that, SRI TRANG is 1.82 times more volatile than Advanced Info Service. It trades about 0.03 of its total potential returns per unit of risk. Advanced Info Service is currently generating about 0.1 per unit of volatility. If you would invest 17,202 in Advanced Info Service on September 4, 2024 and sell it today you would earn a total of 11,398 from holding Advanced Info Service or generate 66.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SRI TRANG GLOVES vs. Advanced Info Service
Performance |
| Timeline |
| SRI TRANG GLOVES |
| Advanced Info Service |
SRI TRANG and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SRI TRANG and Advanced Info
The main advantage of trading using opposite SRI TRANG and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SRI TRANG position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info's long position.| SRI TRANG vs. Earth Tech Environment | SRI TRANG vs. Union Petrochemical Public | SRI TRANG vs. Absolute Clean Energy | SRI TRANG vs. SAF Special Steel |
| Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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