Correlation Between Asia Aviation and Namyong Terminal
Can any of the company-specific risk be diversified away by investing in both Asia Aviation and Namyong Terminal 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 Namyong Terminal 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 Namyong Terminal PCL, you can compare the effects of market volatilities on Asia Aviation and Namyong Terminal 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 Namyong Terminal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Aviation and Namyong Terminal.
Diversification Opportunities for Asia Aviation and Namyong Terminal
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Namyong is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Asia Aviation Public and Namyong Terminal PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namyong Terminal PCL 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 Namyong Terminal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namyong Terminal PCL has no effect on the direction of Asia Aviation i.e., Asia Aviation and Namyong Terminal go up and down completely randomly.
Pair Corralation between Asia Aviation and Namyong Terminal
Assuming the 90 days trading horizon Asia Aviation Public is expected to generate 41.19 times more return on investment than Namyong Terminal. However, Asia Aviation is 41.19 times more volatile than Namyong Terminal PCL. It trades about 0.06 of its potential returns per unit of risk. Namyong Terminal PCL is currently generating about -0.06 per unit of risk. If you would invest 194.00 in Asia Aviation Public on September 4, 2024 and sell it today you would earn a total of 92.00 from holding Asia Aviation Public or generate 47.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Aviation Public vs. Namyong Terminal PCL
Performance |
| Timeline |
| Asia Aviation Public |
| Namyong Terminal PCL |
Asia Aviation and Namyong Terminal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Aviation and Namyong Terminal
The main advantage of trading using opposite Asia Aviation and Namyong Terminal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Aviation position performs unexpectedly, Namyong Terminal 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 Namyong Terminal will offset losses from the drop in Namyong Terminal'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 |
| Namyong Terminal vs. Asia Aviation Public | Namyong Terminal vs. Bangkok Dusit Medical | Namyong Terminal vs. Bangkok Expressway and | Namyong Terminal 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |