Correlation Between Asia Aviation and Salee Printing
Can any of the company-specific risk be diversified away by investing in both Asia Aviation and Salee Printing 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 Salee Printing 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 Salee Printing Public, you can compare the effects of market volatilities on Asia Aviation and Salee Printing 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 Salee Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Aviation and Salee Printing.
Diversification Opportunities for Asia Aviation and Salee Printing
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asia and Salee is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Asia Aviation Public and Salee Printing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salee Printing 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 Salee Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salee Printing Public has no effect on the direction of Asia Aviation i.e., Asia Aviation and Salee Printing go up and down completely randomly.
Pair Corralation between Asia Aviation and Salee Printing
Assuming the 90 days trading horizon Asia Aviation Public is expected to generate 1.0 times more return on investment than Salee Printing. However, Asia Aviation Public is 1.0 times less risky than Salee Printing. It trades about 0.06 of its potential returns per unit of risk. Salee Printing Public 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 Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Asia Aviation Public vs. Salee Printing Public
Performance |
| Timeline |
| Asia Aviation Public |
| Salee Printing Public |
Asia Aviation and Salee Printing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Aviation and Salee Printing
The main advantage of trading using opposite Asia Aviation and Salee Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Aviation position performs unexpectedly, Salee Printing 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 Salee Printing will offset losses from the drop in Salee Printing'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 |
| Salee Printing vs. S Pack Print | Salee Printing vs. Sahamitr Pressure Container | Salee Printing vs. Srithai Superware Public | Salee Printing vs. Sahamit Machinery 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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