Correlation Between Airports and Bangkok Airways
Can any of the company-specific risk be diversified away by investing in both Airports and Bangkok Airways 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 Bangkok Airways 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 Bangkok Airways Public, you can compare the effects of market volatilities on Airports and Bangkok Airways 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 Bangkok Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Bangkok Airways.
Diversification Opportunities for Airports and Bangkok Airways
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Airports and Bangkok is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Bangkok Airways Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Airways 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 Bangkok Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Airways Public has no effect on the direction of Airports i.e., Airports and Bangkok Airways go up and down completely randomly.
Pair Corralation between Airports and Bangkok Airways
Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the Bangkok Airways. In addition to that, Airports is 1.15 times more volatile than Bangkok Airways Public. It trades about -0.32 of its total potential returns per unit of risk. Bangkok Airways Public is currently generating about 0.14 per unit of volatility. If you would invest 1,890 in Bangkok Airways Public on November 29, 2024 and sell it today you would earn a total of 170.00 from holding Bangkok Airways Public or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. Bangkok Airways Public
Performance |
| Timeline |
| Airports of Thailand |
| Bangkok Airways Public |
Airports and Bangkok Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Bangkok Airways
The main advantage of trading using opposite Airports and Bangkok Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Bangkok Airways 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 Airways will offset losses from the drop in Bangkok Airways' long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| Bangkok Airways vs. Asia Aviation Public | Bangkok Airways vs. Bangkok Dusit Medical | Bangkok Airways vs. Bangkok Expressway and | Bangkok Airways vs. Airports of Thailand |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |