Correlation Between Airports and Grande Hospitality
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By analyzing existing cross correlation between Airports of Thailand and Grande Hospitality Real, you can compare the effects of market volatilities on Airports and Grande Hospitality 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 Grande Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Grande Hospitality.
Diversification Opportunities for Airports and Grande Hospitality
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Airports and Grande is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Grande Hospitality Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Hospitality Real 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 Grande Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Hospitality Real has no effect on the direction of Airports i.e., Airports and Grande Hospitality go up and down completely randomly.
Pair Corralation between Airports and Grande Hospitality
Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the Grande Hospitality. In addition to that, Airports is 1.15 times more volatile than Grande Hospitality Real. It trades about -0.05 of its total potential returns per unit of risk. Grande Hospitality Real is currently generating about -0.03 per unit of volatility. If you would invest 772.00 in Grande Hospitality Real on November 6, 2024 and sell it today you would lose (102.00) from holding Grande Hospitality Real or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. Grande Hospitality Real
Performance |
| Timeline |
| Airports of Thailand |
| Grande Hospitality Real |
Airports and Grande Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Grande Hospitality
The main advantage of trading using opposite Airports and Grande Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Grande Hospitality 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 Grande Hospitality will offset losses from the drop in Grande Hospitality's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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