Correlation Between TISCO Financial and Advanced Info
Can any of the company-specific risk be diversified away by investing in both TISCO Financial 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 TISCO Financial and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TISCO Financial Group and Advanced Info Service, you can compare the effects of market volatilities on TISCO Financial 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 TISCO Financial with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Advanced Info.
Diversification Opportunities for TISCO Financial and Advanced Info
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TISCO and Advanced is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group 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 TISCO Financial 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 TISCO Financial Group 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 TISCO Financial i.e., TISCO Financial and Advanced Info go up and down completely randomly.
Pair Corralation between TISCO Financial and Advanced Info
Assuming the 90 days trading horizon TISCO Financial is expected to generate 3.99 times less return on investment than Advanced Info. But when comparing it to its historical volatility, TISCO Financial Group is 2.53 times less risky than Advanced Info. It trades about 0.05 of its potential returns per unit of risk. Advanced Info Service is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20,801 in Advanced Info Service on November 9, 2024 and sell it today you would earn a total of 6,699 from holding Advanced Info Service or generate 32.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. Advanced Info Service
Performance |
| Timeline |
| TISCO Financial Group |
| Advanced Info Service |
TISCO Financial and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Advanced Info
The main advantage of trading using opposite TISCO Financial and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial 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.| TISCO Financial vs. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial vs. Bangkok Bank Public |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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