Correlation Between Pili International and Air Asia
Can any of the company-specific risk be diversified away by investing in both Pili International and Air Asia 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 Pili International and Air Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pili International Multimedia and Air Asia Co, you can compare the effects of market volatilities on Pili International and Air Asia 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 Pili International with a short position of Air Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pili International and Air Asia.
Diversification Opportunities for Pili International and Air Asia
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pili and Air is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pili International Multimedia and Air Asia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Asia and Pili International 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 Pili International Multimedia are associated (or correlated) with Air Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Asia has no effect on the direction of Pili International i.e., Pili International and Air Asia go up and down completely randomly.
Pair Corralation between Pili International and Air Asia
Assuming the 90 days trading horizon Pili International Multimedia is expected to generate 0.91 times more return on investment than Air Asia. However, Pili International Multimedia is 1.1 times less risky than Air Asia. It trades about -0.08 of its potential returns per unit of risk. Air Asia Co is currently generating about -0.16 per unit of risk. If you would invest 2,450 in Pili International Multimedia on September 1, 2024 and sell it today you would lose (60.00) from holding Pili International Multimedia or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pili International Multimedia vs. Air Asia Co
Performance |
| Timeline |
| Pili International |
| Air Asia |
Pili International and Air Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pili International and Air Asia
The main advantage of trading using opposite Pili International and Air Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pili International position performs unexpectedly, Air Asia 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 Air Asia will offset losses from the drop in Air Asia's long position.| Pili International vs. Deltamac Taiwan Co | Pili International vs. YuantaP shares Taiwan Top | Pili International vs. YuantaP shares Taiwan Electronics | Pili International vs. Fubon MSCI Taiwan |
| Air Asia vs. Weltrend Semiconductor | Air Asia vs. Realtek Semiconductor Corp | Air Asia vs. EnTie Commercial Bank | Air Asia vs. Niko Semiconductor Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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