Correlation Between AIRA Factoring and Akkhie Prakarn
Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Akkhie Prakarn 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 AIRA Factoring and Akkhie Prakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Factoring Public and Akkhie Prakarn Public, you can compare the effects of market volatilities on AIRA Factoring and Akkhie Prakarn 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 AIRA Factoring with a short position of Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Akkhie Prakarn.
Diversification Opportunities for AIRA Factoring and Akkhie Prakarn
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between AIRA and Akkhie is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Akkhie Prakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akkhie Prakarn Public and AIRA Factoring 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 AIRA Factoring Public are associated (or correlated) with Akkhie Prakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akkhie Prakarn Public has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Akkhie Prakarn go up and down completely randomly.
Pair Corralation between AIRA Factoring and Akkhie Prakarn
Assuming the 90 days horizon AIRA Factoring Public is expected to under-perform the Akkhie Prakarn. But the stock apears to be less risky and, when comparing its historical volatility, AIRA Factoring Public is 12.41 times less risky than Akkhie Prakarn. The stock trades about -0.02 of its potential returns per unit of risk. The Akkhie Prakarn Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Akkhie Prakarn Public on November 8, 2024 and sell it today you would lose (145.00) from holding Akkhie Prakarn Public or give up 71.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRA Factoring Public vs. Akkhie Prakarn Public
Performance |
| Timeline |
| AIRA Factoring Public |
| Akkhie Prakarn Public |
AIRA Factoring and Akkhie Prakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Factoring and Akkhie Prakarn
The main advantage of trading using opposite AIRA Factoring and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Akkhie Prakarn 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 Akkhie Prakarn will offset losses from the drop in Akkhie Prakarn's long position.| AIRA Factoring vs. Akkhie Prakarn Public | AIRA Factoring vs. Asia Green Energy | AIRA Factoring vs. ASIA Capital Group |
| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. ARIP Public | Akkhie Prakarn vs. ASIA Capital Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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