Correlation Between Airports and OSOTSPA PCL
Can any of the company-specific risk be diversified away by investing in both Airports and OSOTSPA PCL 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 Airports and OSOTSPA PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airports of Thailand and OSOTSPA PCL NVDR, you can compare the effects of market volatilities on Airports and OSOTSPA PCL 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 OSOTSPA PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and OSOTSPA PCL.
Diversification Opportunities for Airports and OSOTSPA PCL
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Airports and OSOTSPA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and OSOTSPA PCL NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSOTSPA PCL NVDR 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 OSOTSPA PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSOTSPA PCL NVDR has no effect on the direction of Airports i.e., Airports and OSOTSPA PCL go up and down completely randomly.
Pair Corralation between Airports and OSOTSPA PCL
Assuming the 90 days trading horizon Airports of Thailand is expected to generate 0.63 times more return on investment than OSOTSPA PCL. However, Airports of Thailand is 1.59 times less risky than OSOTSPA PCL. It trades about -0.19 of its potential returns per unit of risk. OSOTSPA PCL NVDR is currently generating about -0.19 per unit of risk. If you would invest 7,070 in Airports of Thailand on September 1, 2024 and sell it today you would lose (995.00) from holding Airports of Thailand or give up 14.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Airports of Thailand vs. OSOTSPA PCL NVDR
Performance |
| Timeline |
| Airports of Thailand |
| OSOTSPA PCL NVDR |
Airports and OSOTSPA PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and OSOTSPA PCL
The main advantage of trading using opposite Airports and OSOTSPA PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, OSOTSPA PCL 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 OSOTSPA PCL will offset losses from the drop in OSOTSPA PCL's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Bangkok Dusit Medical | Airports vs. The Siam Cement |
| OSOTSPA PCL vs. CP ALL Public | OSOTSPA PCL vs. Charoen Pokphand Foods | OSOTSPA PCL vs. Electricity Generating Public | OSOTSPA PCL vs. PTT 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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