Correlation Between AIRA Factoring and Chewathai Public
Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Chewathai Public 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 Chewathai Public 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 Chewathai Public, you can compare the effects of market volatilities on AIRA Factoring and Chewathai Public 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 Chewathai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Chewathai Public.
Diversification Opportunities for AIRA Factoring and Chewathai Public
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIRA and Chewathai is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Chewathai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chewathai 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 Chewathai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chewathai Public has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Chewathai Public go up and down completely randomly.
Pair Corralation between AIRA Factoring and Chewathai Public
Assuming the 90 days horizon AIRA Factoring is expected to generate 76.26 times less return on investment than Chewathai Public. But when comparing it to its historical volatility, AIRA Factoring Public is 15.28 times less risky than Chewathai Public. It trades about 0.02 of its potential returns per unit of risk. Chewathai Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Chewathai Public on September 1, 2024 and sell it today you would lose (6.00) from holding Chewathai Public or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
AIRA Factoring Public vs. Chewathai Public
Performance |
| Timeline |
| AIRA Factoring Public |
| Chewathai Public |
AIRA Factoring and Chewathai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Factoring and Chewathai Public
The main advantage of trading using opposite AIRA Factoring and Chewathai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Chewathai Public 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 Chewathai Public will offset losses from the drop in Chewathai Public's long position.| AIRA Factoring vs. East Coast Furnitech | AIRA Factoring vs. Filter Vision Public | AIRA Factoring vs. Cho Thavee Public | AIRA Factoring vs. Akkhie Prakarn Public |
| Chewathai Public vs. Cho Thavee Public | Chewathai Public vs. East Coast Furnitech | Chewathai Public vs. Hydrotek Public | Chewathai Public vs. Chularat Hospital 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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