Correlation Between Airports and Thai Ha
Can any of the company-specific risk be diversified away by investing in both Airports and Thai Ha 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 Thai Ha 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 Thai Ha Public, you can compare the effects of market volatilities on Airports and Thai Ha 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 Thai Ha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Thai Ha.
Diversification Opportunities for Airports and Thai Ha
Poor diversification
The 3 months correlation between Airports and Thai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Thai Ha Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Ha 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 Thai Ha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Ha Public has no effect on the direction of Airports i.e., Airports and Thai Ha go up and down completely randomly.
Pair Corralation between Airports and Thai Ha
Assuming the 90 days trading horizon Airports of Thailand is expected to generate 0.48 times more return on investment than Thai Ha. However, Airports of Thailand is 2.1 times less risky than Thai Ha. It trades about -0.04 of its potential returns per unit of risk. Thai Ha Public is currently generating about -0.14 per unit of risk. If you would invest 6,269 in Airports of Thailand on September 13, 2024 and sell it today you would lose (119.00) from holding Airports of Thailand or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. Thai Ha Public
Performance |
| Timeline |
| Airports of Thailand |
| Thai Ha Public |
Airports and Thai Ha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Thai Ha
The main advantage of trading using opposite Airports and Thai Ha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Thai Ha 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 Thai Ha will offset losses from the drop in Thai Ha's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| Thai Ha vs. Thai Union Group | Thai Ha vs. Thai Union Group | Thai Ha vs. Thai President Foods | Thai Ha vs. Thai Vegetable Oil |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |