Correlation Between AIRA Capital and ASIA Capital
Can any of the company-specific risk be diversified away by investing in both AIRA Capital and ASIA Capital 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 Capital and ASIA Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Capital Public and ASIA Capital Group, you can compare the effects of market volatilities on AIRA Capital and ASIA Capital 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 Capital with a short position of ASIA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Capital and ASIA Capital.
Diversification Opportunities for AIRA Capital and ASIA Capital
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIRA and ASIA is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Capital Public and ASIA Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASIA Capital Group and AIRA Capital 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 Capital Public are associated (or correlated) with ASIA Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASIA Capital Group has no effect on the direction of AIRA Capital i.e., AIRA Capital and ASIA Capital go up and down completely randomly.
Pair Corralation between AIRA Capital and ASIA Capital
Assuming the 90 days trading horizon AIRA Capital Public is expected to generate 0.19 times more return on investment than ASIA Capital. However, AIRA Capital Public is 5.18 times less risky than ASIA Capital. It trades about -0.09 of its potential returns per unit of risk. ASIA Capital Group is currently generating about -0.22 per unit of risk. If you would invest 131.00 in AIRA Capital Public on September 3, 2024 and sell it today you would lose (13.00) from holding AIRA Capital Public or give up 9.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
AIRA Capital Public vs. ASIA Capital Group
Performance |
| Timeline |
| AIRA Capital Public |
| ASIA Capital Group |
AIRA Capital and ASIA Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Capital and ASIA Capital
The main advantage of trading using opposite AIRA Capital and ASIA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Capital position performs unexpectedly, ASIA Capital 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 ASIA Capital will offset losses from the drop in ASIA Capital's long position.| AIRA Capital vs. Delta Electronics Public | AIRA Capital vs. Delta Electronics Public | AIRA Capital vs. Airports of Thailand | AIRA Capital vs. Airports of Thailand |
| ASIA Capital vs. Multibax Public | ASIA Capital vs. Forth Smart Service | ASIA Capital vs. LPN Development Public | ASIA Capital vs. Jasmine International 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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