Correlation Between Advanced Information and Somboon Advance

Can any of the company-specific risk be diversified away by investing in both Advanced Information and Somboon Advance 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 Advanced Information and Somboon Advance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advanced Information Technology and Somboon Advance Technology, you can compare the effects of market volatilities on Advanced Information and Somboon Advance 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 Advanced Information with a short position of Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Information and Somboon Advance.

Diversification Opportunities for Advanced Information and Somboon Advance

0.67

Correlation Coefficient

Advanced Information  Somboon Advance

Poor diversification

The 3 months correlation between Advanced and Somboon is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech and Advanced Information 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 Advanced Information Technology are associated (or correlated) with Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of Advanced Information i.e., Advanced Information and Somboon Advance go up and down completely randomly.

Pair Corralation between Advanced Information and Somboon Advance

Assuming the 90 days trading horizon Advanced Information Technology is expected to generate 1.33 times more return on investment than Somboon Advance. However, Advanced Information is 1.33 times more volatile than Somboon Advance Technology. It trades about 0.19 of its potential returns per unit of risk. Somboon Advance Technology is currently generating about 0.1 per unit of risk. If you would invest  410.00  in Advanced Information Technology on April 22, 2025 and sell it today you would earn a total of  95.00  from holding Advanced Information Technology or generate 23.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Advanced Information Technolog  vs.  Somboon Advance Technology

Advanced Information

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Information Technology are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Advanced Information disclosed solid returns over the last few months and may actually be approaching a breakup point.

Somboon Advance Tech

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Somboon Advance Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Somboon Advance may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Advanced Information and Somboon Advance

The main advantage of trading using opposite Advanced Information and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Information position performs unexpectedly, Somboon Advance 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 Somboon Advance will offset losses from the drop in Somboon Advance's long position.

The idea behind Advanced Information Technology and Somboon Advance Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.