Correlation Between AEON Thana and City Sports

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Can any of the company-specific risk be diversified away by investing in both AEON Thana and City Sports 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 AEON Thana and City Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON Thana Sinsap and City Sports and, you can compare the effects of market volatilities on AEON Thana and City Sports 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 AEON Thana with a short position of City Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON Thana and City Sports.

Diversification Opportunities for AEON Thana and City Sports

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between AEON and City is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AEON Thana Sinsap and City Sports and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Sports and AEON Thana 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 AEON Thana Sinsap are associated (or correlated) with City Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Sports has no effect on the direction of AEON Thana i.e., AEON Thana and City Sports go up and down completely randomly.

Pair Corralation between AEON Thana and City Sports

If you would invest  8,100  in City Sports and on September 13, 2024 and sell it today you would earn a total of  525.00  from holding City Sports and or generate 6.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy90.0%
ValuesDaily Returns

AEON Thana Sinsap  vs.  City Sports and

 Performance 
       Timeline  
AEON Thana Sinsap 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in AEON Thana Sinsap are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, AEON Thana sustained solid returns over the last few months and may actually be approaching a breakup point.
City Sports 

Risk-Adjusted Performance

31 of 100

 
Weak
 
Strong
Very Strong
Compared to the overall equity markets, risk-adjusted returns on investments in City Sports and are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, City Sports disclosed solid returns over the last few months and may actually be approaching a breakup point.

AEON Thana and City Sports Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AEON Thana and City Sports

The main advantage of trading using opposite AEON Thana and City Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON Thana position performs unexpectedly, City Sports 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 City Sports will offset losses from the drop in City Sports' long position.
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The idea behind AEON Thana Sinsap and City Sports and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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