Correlation Between Asia Aviation and Bangkok Airways
Can any of the company-specific risk be diversified away by investing in both Asia Aviation and Bangkok Airways 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 Bangkok Airways 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 Bangkok Airways Public, you can compare the effects of market volatilities on Asia Aviation and Bangkok Airways 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 Bangkok Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Aviation and Bangkok Airways.
Diversification Opportunities for Asia Aviation and Bangkok Airways
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Bangkok is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Asia Aviation Public and Bangkok Airways Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Airways 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 Bangkok Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Airways Public has no effect on the direction of Asia Aviation i.e., Asia Aviation and Bangkok Airways go up and down completely randomly.
Pair Corralation between Asia Aviation and Bangkok Airways
Assuming the 90 days trading horizon Asia Aviation Public is expected to under-perform the Bangkok Airways. But the stock apears to be less risky and, when comparing its historical volatility, Asia Aviation Public is 1.33 times less risky than Bangkok Airways. The stock trades about -0.07 of its potential returns per unit of risk. The Bangkok Airways Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,430 in Bangkok Airways Public on August 31, 2024 and sell it today you would lose (50.00) from holding Bangkok Airways Public or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Aviation Public vs. Bangkok Airways Public
Performance |
| Timeline |
| Asia Aviation Public |
| Bangkok Airways Public |
Asia Aviation and Bangkok Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Aviation and Bangkok Airways
The main advantage of trading using opposite Asia Aviation and Bangkok Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Aviation position performs unexpectedly, Bangkok Airways 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 Bangkok Airways will offset losses from the drop in Bangkok Airways' 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 |
| Bangkok Airways vs. Asia Aviation Public | Bangkok Airways vs. Bangkok Dusit Medical | Bangkok Airways vs. Bangkok Expressway and | Bangkok Airways vs. Airports of Thailand |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |