Correlation Between Asia Aviation and Akkhie Prakarn
Can any of the company-specific risk be diversified away by investing in both Asia Aviation and Akkhie Prakarn 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 Asia Aviation and Akkhie Prakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Aviation Public and Akkhie Prakarn Public, you can compare the effects of market volatilities on Asia Aviation and Akkhie Prakarn 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 Asia Aviation with a short position of Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Aviation and Akkhie Prakarn.
Diversification Opportunities for Asia Aviation and Akkhie Prakarn
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asia and Akkhie is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Asia Aviation Public and Akkhie Prakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akkhie Prakarn Public and Asia Aviation 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 Asia Aviation Public are associated (or correlated) with Akkhie Prakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akkhie Prakarn Public has no effect on the direction of Asia Aviation i.e., Asia Aviation and Akkhie Prakarn go up and down completely randomly.
Pair Corralation between Asia Aviation and Akkhie Prakarn
Assuming the 90 days trading horizon Asia Aviation Public is expected to generate 1.0 times more return on investment than Akkhie Prakarn. However, Asia Aviation Public is 1.0 times less risky than Akkhie Prakarn. It trades about 0.05 of its potential returns per unit of risk. Akkhie Prakarn Public is currently generating about 0.04 per unit of risk. If you would invest 290.00 in Asia Aviation Public on September 1, 2024 and sell it today you would lose (8.00) from holding Asia Aviation Public or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Aviation Public vs. Akkhie Prakarn Public
Performance |
| Timeline |
| Asia Aviation Public |
| Akkhie Prakarn Public |
Asia Aviation and Akkhie Prakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Aviation and Akkhie Prakarn
The main advantage of trading using opposite Asia Aviation and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Aviation position performs unexpectedly, Akkhie Prakarn 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 Akkhie Prakarn will offset losses from the drop in Akkhie Prakarn's long position.| Asia Aviation vs. Airports of Thailand | Asia Aviation vs. Bangkok Expressway and | Asia Aviation vs. BTS Group Holdings | Asia Aviation vs. Bangkok Airways Public |
| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. Cho Thavee Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ARIP 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |