Correlation Between Airports and OHTL Public
Can any of the company-specific risk be diversified away by investing in both Airports and OHTL Public 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 OHTL Public 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 OHTL Public, you can compare the effects of market volatilities on Airports and OHTL Public 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 OHTL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and OHTL Public.
Diversification Opportunities for Airports and OHTL Public
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Airports and OHTL is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and OHTL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OHTL 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 OHTL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OHTL Public has no effect on the direction of Airports i.e., Airports and OHTL Public go up and down completely randomly.
Pair Corralation between Airports and OHTL Public
Assuming the 90 days trading horizon Airports of Thailand is expected to generate 0.88 times more return on investment than OHTL Public. However, Airports of Thailand is 1.14 times less risky than OHTL Public. It trades about -0.02 of its potential returns per unit of risk. OHTL Public is currently generating about -0.16 per unit of risk. If you would invest 6,225 in Airports of Thailand on September 4, 2024 and sell it today you would lose (50.00) from holding Airports of Thailand or give up 0.8% 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. OHTL Public
Performance |
| Timeline |
| Airports of Thailand |
| OHTL Public |
Airports and OHTL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and OHTL Public
The main advantage of trading using opposite Airports and OHTL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, OHTL Public 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 OHTL Public will offset losses from the drop in OHTL Public's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| OHTL Public vs. Central Pattana Public | OHTL Public vs. CP ALL Public | OHTL Public vs. Bangkok Dusit Medical | OHTL Public 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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