Correlation Between AIRA Capital and BGT Public
Can any of the company-specific risk be diversified away by investing in both AIRA Capital and BGT 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 Capital and BGT Public 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 BGT Public, you can compare the effects of market volatilities on AIRA Capital and BGT 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 Capital with a short position of BGT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Capital and BGT Public.
Diversification Opportunities for AIRA Capital and BGT Public
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIRA and BGT is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Capital Public and BGT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGT Public 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 BGT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGT Public has no effect on the direction of AIRA Capital i.e., AIRA Capital and BGT Public go up and down completely randomly.
Pair Corralation between AIRA Capital and BGT Public
Assuming the 90 days trading horizon AIRA Capital Public is expected to under-perform the BGT Public. In addition to that, AIRA Capital is 1.87 times more volatile than BGT Public. It trades about -0.09 of its total potential returns per unit of risk. BGT Public is currently generating about -0.17 per unit of volatility. If you would invest 58.00 in BGT Public on September 3, 2024 and sell it today you would lose (5.00) from holding BGT Public or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRA Capital Public vs. BGT Public
Performance |
| Timeline |
| AIRA Capital Public |
| BGT Public |
AIRA Capital and BGT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Capital and BGT Public
The main advantage of trading using opposite AIRA Capital and BGT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Capital position performs unexpectedly, BGT 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 BGT Public will offset losses from the drop in BGT Public'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 |
| BGT Public vs. Cho Thavee Public | BGT Public vs. G Capital Public | BGT Public vs. CI Group Public | BGT Public 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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