Correlation Between Asian Alliance and AEON Thana
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By analyzing existing cross correlation between Asian Alliance International and AEON Thana Sinsap, you can compare the effects of market volatilities on Asian Alliance and AEON Thana 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 Asian Alliance with a short position of AEON Thana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Alliance and AEON Thana.
Diversification Opportunities for Asian Alliance and AEON Thana
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asian and AEON is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Asian Alliance International and AEON Thana Sinsap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON Thana Sinsap and Asian Alliance 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 Asian Alliance International are associated (or correlated) with AEON Thana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON Thana Sinsap has no effect on the direction of Asian Alliance i.e., Asian Alliance and AEON Thana go up and down completely randomly.
Pair Corralation between Asian Alliance and AEON Thana
Assuming the 90 days trading horizon Asian Alliance International is expected to under-perform the AEON Thana. But the stock apears to be less risky and, when comparing its historical volatility, Asian Alliance International is 131.74 times less risky than AEON Thana. The stock trades about -0.12 of its potential returns per unit of risk. The AEON Thana Sinsap is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 16,575 in AEON Thana Sinsap on September 5, 2024 and sell it today you would lose (4,075) from holding AEON Thana Sinsap or give up 24.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 69.57% |
| Values | Daily Returns |
Asian Alliance International vs. AEON Thana Sinsap
Performance |
| Timeline |
| Asian Alliance Inter |
| AEON Thana Sinsap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Asian Alliance and AEON Thana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Alliance and AEON Thana
The main advantage of trading using opposite Asian Alliance and AEON Thana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Alliance position performs unexpectedly, AEON Thana 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 AEON Thana will offset losses from the drop in AEON Thana's long position.| Asian Alliance vs. Kingsmen CMTI Public | Asian Alliance vs. Hydrotek Public | Asian Alliance vs. Karmarts Public | Asian Alliance vs. KC Metalsheet Public |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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