Correlation Between AIM Industrial and Bangkok Commercial
Can any of the company-specific risk be diversified away by investing in both AIM Industrial and Bangkok Commercial 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 AIM Industrial and Bangkok Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM Industrial Growth and Bangkok Commercial Property, you can compare the effects of market volatilities on AIM Industrial and Bangkok Commercial 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 AIM Industrial with a short position of Bangkok Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Industrial and Bangkok Commercial.
Diversification Opportunities for AIM Industrial and Bangkok Commercial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AIM and Bangkok is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AIM Industrial Growth and Bangkok Commercial Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Commercial and AIM Industrial 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 AIM Industrial Growth are associated (or correlated) with Bangkok Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Commercial has no effect on the direction of AIM Industrial i.e., AIM Industrial and Bangkok Commercial go up and down completely randomly.
Pair Corralation between AIM Industrial and Bangkok Commercial
Assuming the 90 days trading horizon AIM Industrial Growth is expected to under-perform the Bangkok Commercial. But the stock apears to be less risky and, when comparing its historical volatility, AIM Industrial Growth is 1.35 times less risky than Bangkok Commercial. The stock trades about -0.04 of its potential returns per unit of risk. The Bangkok Commercial Property is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 880.00 in Bangkok Commercial Property on September 4, 2024 and sell it today you would earn a total of 25.00 from holding Bangkok Commercial Property or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM Industrial Growth vs. Bangkok Commercial Property
Performance |
| Timeline |
| AIM Industrial Growth |
| Bangkok Commercial |
AIM Industrial and Bangkok Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM Industrial and Bangkok Commercial
The main advantage of trading using opposite AIM Industrial and Bangkok Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM Industrial position performs unexpectedly, Bangkok Commercial 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 Bangkok Commercial will offset losses from the drop in Bangkok Commercial's long position.| AIM Industrial vs. Amata Summit Growth | AIM Industrial vs. WHA Premium Growth | AIM Industrial vs. Digital Telecommunications Infrastructure | AIM Industrial vs. Quality Houses Property |
| Bangkok Commercial vs. WHA Premium Growth | Bangkok Commercial vs. Impact Growth REIT | Bangkok Commercial vs. LH Shopping Centers | Bangkok Commercial vs. Golden Ventures Leasehold |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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