Correlation Between Yong Concrete and Ama Marine
Can any of the company-specific risk be diversified away by investing in both Yong Concrete and Ama Marine 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 Yong Concrete and Ama Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yong Concrete PCL and Ama Marine Public, you can compare the effects of market volatilities on Yong Concrete and Ama Marine 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 Yong Concrete with a short position of Ama Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yong Concrete and Ama Marine.
Diversification Opportunities for Yong Concrete and Ama Marine
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yong and Ama is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yong Concrete PCL and Ama Marine Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ama Marine Public and Yong 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 Yong Concrete PCL are associated (or correlated) with Ama Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ama Marine Public has no effect on the direction of Yong Concrete i.e., Yong Concrete and Ama Marine go up and down completely randomly.
Pair Corralation between Yong Concrete and Ama Marine
Assuming the 90 days trading horizon Yong Concrete PCL is expected to under-perform the Ama Marine. In addition to that, Yong Concrete is 2.81 times more volatile than Ama Marine Public. It trades about -0.24 of its total potential returns per unit of risk. Ama Marine Public is currently generating about -0.29 per unit of volatility. If you would invest 438.00 in Ama Marine Public on August 29, 2024 and sell it today you would lose (26.00) from holding Ama Marine Public or give up 5.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yong Concrete PCL vs. Ama Marine Public
Performance |
| Timeline |
| Yong Concrete PCL |
| Ama Marine Public |
Yong Concrete and Ama Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yong Concrete and Ama Marine
The main advantage of trading using opposite Yong Concrete and Ama Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yong Concrete position performs unexpectedly, Ama Marine 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 Ama Marine will offset losses from the drop in Ama Marine's long position.| Yong Concrete vs. Wave Entertainment Public | Yong Concrete vs. Vibhavadi Medical Center | Yong Concrete vs. TPI Polene Public | Yong Concrete vs. Asia Green Energy |
| Ama Marine vs. After You Public | Ama Marine vs. Akkhie Prakarn Public | Ama Marine vs. ASIA Capital Group | Ama Marine vs. The Erawan Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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