Correlation Between Airports and Major Cineplex
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By analyzing existing cross correlation between Airports of Thailand and Major Cineplex Group, you can compare the effects of market volatilities on Airports and Major Cineplex 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 Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Major Cineplex.
Diversification Opportunities for Airports and Major Cineplex
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Airports and Major is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Major Cineplex Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Group 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 Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Group has no effect on the direction of Airports i.e., Airports and Major Cineplex go up and down completely randomly.
Pair Corralation between Airports and Major Cineplex
Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the Major Cineplex. But the stock apears to be less risky and, when comparing its historical volatility, Airports of Thailand is 56.74 times less risky than Major Cineplex. The stock trades about -0.03 of its potential returns per unit of risk. The Major Cineplex Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,921 in Major Cineplex Group on September 3, 2024 and sell it today you would lose (471.00) from holding Major Cineplex Group or give up 24.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. Major Cineplex Group
Performance |
| Timeline |
| Airports of Thailand |
| Major Cineplex Group |
Airports and Major Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Major Cineplex
The main advantage of trading using opposite Airports and Major Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Major Cineplex 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 Major Cineplex will offset losses from the drop in Major Cineplex's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| Major Cineplex vs. Food Moments PCL | Major Cineplex vs. Delta Electronics Public | Major Cineplex vs. INET Leasehold REIT | Major Cineplex vs. Asia Sermkij Leasing |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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