Correlation Between AEON Thana and Team Precision
Can any of the company-specific risk be diversified away by investing in both AEON Thana and Team Precision 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 Team Precision 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 Team Precision Public, you can compare the effects of market volatilities on AEON Thana and Team Precision 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 Team Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON Thana and Team Precision.
Diversification Opportunities for AEON Thana and Team Precision
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AEON and Team is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AEON Thana Sinsap and Team Precision Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Team Precision Public 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 Team Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Team Precision Public has no effect on the direction of AEON Thana i.e., AEON Thana and Team Precision go up and down completely randomly.
Pair Corralation between AEON Thana and Team Precision
Assuming the 90 days trading horizon AEON Thana Sinsap is expected to under-perform the Team Precision. But the stock apears to be less risky and, when comparing its historical volatility, AEON Thana Sinsap is 33.05 times less risky than Team Precision. The stock trades about -0.03 of its potential returns per unit of risk. The Team Precision Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 481.00 in Team Precision Public on September 3, 2024 and sell it today you would lose (219.00) from holding Team Precision Public or give up 45.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON Thana Sinsap vs. Team Precision Public
Performance |
| Timeline |
| AEON Thana Sinsap |
| Team Precision Public |
AEON Thana and Team Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON Thana and Team Precision
The main advantage of trading using opposite AEON Thana and Team Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON Thana position performs unexpectedly, Team Precision 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 Team Precision will offset losses from the drop in Team Precision's long position.| AEON Thana vs. Krungthai Card PCL | AEON Thana vs. Carabao Group Public | AEON Thana vs. Kasikornbank Public | AEON Thana vs. Advanced Info Service |
| Team Precision vs. SVI Public | Team Precision vs. SVOA Public | Team Precision vs. Hana Microelectronics Public | Team Precision vs. TKS Technologies 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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