Correlation Between Asia Aviation and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both Asia Aviation and Thoresen Thai 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 Thoresen Thai 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 Thoresen Thai Agencies, you can compare the effects of market volatilities on Asia Aviation and Thoresen Thai 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 Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Aviation and Thoresen Thai.
Diversification Opportunities for Asia Aviation and Thoresen Thai
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Thoresen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Asia Aviation Public and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies 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 Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of Asia Aviation i.e., Asia Aviation and Thoresen Thai go up and down completely randomly.
Pair Corralation between Asia Aviation and Thoresen Thai
Assuming the 90 days trading horizon Asia Aviation Public is expected to generate 19.24 times more return on investment than Thoresen Thai. However, Asia Aviation is 19.24 times more volatile than Thoresen Thai Agencies. It trades about 0.04 of its potential returns per unit of risk. Thoresen Thai Agencies is currently generating about -0.01 per unit of risk. If you would invest 290.00 in Asia Aviation Public on September 13, 2024 and sell it today you would lose (10.00) from holding Asia Aviation Public or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Aviation Public vs. Thoresen Thai Agencies
Performance |
| Timeline |
| Asia Aviation Public |
| Thoresen Thai Agencies |
Asia Aviation and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Aviation and Thoresen Thai
The main advantage of trading using opposite Asia Aviation and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Aviation position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai'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 |
| Thoresen Thai vs. Precious Shipping Public | Thoresen Thai vs. Regional Container Lines | Thoresen Thai vs. PTT Public | Thoresen Thai vs. The Siam Cement |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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