Correlation Between Airports and CP ALL
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By analyzing existing cross correlation between Airports of Thailand and CP ALL Public, you can compare the effects of market volatilities on Airports and CP ALL 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 Airports with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and CP ALL.
Diversification Opportunities for Airports and CP ALL
Significant diversification
The 3 months correlation between Airports and CPALL-R is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and Airports 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 Airports of Thailand are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Airports i.e., Airports and CP ALL go up and down completely randomly.
Pair Corralation between Airports and CP ALL
Assuming the 90 days trading horizon Airports of Thailand is expected to generate 49.38 times more return on investment than CP ALL. However, Airports is 49.38 times more volatile than CP ALL Public. It trades about 0.06 of its potential returns per unit of risk. CP ALL Public is currently generating about 0.01 per unit of risk. If you would invest 7,397 in Airports of Thailand on August 28, 2024 and sell it today you would lose (1,247) from holding Airports of Thailand or give up 16.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Airports of Thailand vs. CP ALL Public
Performance |
| Timeline |
| Airports of Thailand |
| CP ALL Public |
Airports and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and CP ALL
The main advantage of trading using opposite Airports and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Bangkok Dusit Medical | Airports vs. The Siam Cement |
| CP ALL vs. Airports of Thailand | CP ALL vs. CP ALL Public | CP ALL vs. Charoen Pokphand Foods | CP ALL vs. Bangkok Dusit Medical |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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