Correlation Between Asia Aviation and Gratitude Infinite
Can any of the company-specific risk be diversified away by investing in both Asia Aviation and Gratitude Infinite 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 Gratitude Infinite 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 Gratitude Infinite Public, you can compare the effects of market volatilities on Asia Aviation and Gratitude Infinite 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 Gratitude Infinite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Aviation and Gratitude Infinite.
Diversification Opportunities for Asia Aviation and Gratitude Infinite
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asia and Gratitude is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Asia Aviation Public and Gratitude Infinite Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gratitude Infinite 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 Gratitude Infinite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gratitude Infinite Public has no effect on the direction of Asia Aviation i.e., Asia Aviation and Gratitude Infinite go up and down completely randomly.
Pair Corralation between Asia Aviation and Gratitude Infinite
Assuming the 90 days trading horizon Asia Aviation Public is expected to generate 0.44 times more return on investment than Gratitude Infinite. However, Asia Aviation Public is 2.26 times less risky than Gratitude Infinite. It trades about 0.09 of its potential returns per unit of risk. Gratitude Infinite Public is currently generating about -0.18 per unit of risk. If you would invest 256.00 in Asia Aviation Public on September 12, 2024 and sell it today you would earn a total of 26.00 from holding Asia Aviation Public or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Aviation Public vs. Gratitude Infinite Public
Performance |
| Timeline |
| Asia Aviation Public |
| Gratitude Infinite Public |
Asia Aviation and Gratitude Infinite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Aviation and Gratitude Infinite
The main advantage of trading using opposite Asia Aviation and Gratitude Infinite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Aviation position performs unexpectedly, Gratitude Infinite 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 Gratitude Infinite will offset losses from the drop in Gratitude Infinite'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 |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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