Correlation Between Asia Aviation and SKijchai Enterprise
Can any of the company-specific risk be diversified away by investing in both Asia Aviation and SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise Public, you can compare the effects of market volatilities on Asia Aviation and SKijchai Enterprise 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 SKijchai Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Aviation and SKijchai Enterprise.
Diversification Opportunities for Asia Aviation and SKijchai Enterprise
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asia and SKijchai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Asia Aviation Public and SKijchai Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKijchai Enterprise 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 SKijchai Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKijchai Enterprise has no effect on the direction of Asia Aviation i.e., Asia Aviation and SKijchai Enterprise go up and down completely randomly.
Pair Corralation between Asia Aviation and SKijchai Enterprise
Assuming the 90 days trading horizon Asia Aviation is expected to generate 1.02 times less return on investment than SKijchai Enterprise. In addition to that, Asia Aviation is 1.0 times more volatile than SKijchai Enterprise Public. It trades about 0.05 of its total potential returns per unit of risk. SKijchai Enterprise Public is currently generating about 0.06 per unit of volatility. If you would invest 411.00 in SKijchai Enterprise Public on September 4, 2024 and sell it today you would earn a total of 129.00 from holding SKijchai Enterprise Public or generate 31.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Aviation Public vs. SKijchai Enterprise Public
Performance |
| Timeline |
| Asia Aviation Public |
| SKijchai Enterprise |
Asia Aviation and SKijchai Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Aviation and SKijchai Enterprise
The main advantage of trading using opposite Asia Aviation and SKijchai Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Aviation position performs unexpectedly, SKijchai Enterprise 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 SKijchai Enterprise will offset losses from the drop in SKijchai Enterprise'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 |
| SKijchai Enterprise vs. Sahamitr Pressure Container | SKijchai Enterprise vs. Diamond Building Products | SKijchai Enterprise vs. Regional Container Lines | SKijchai Enterprise vs. Lalin Property 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 Stocks Directory module to find actively traded stocks across global markets.
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