Correlation Between Airports and Patrangsit Healthcare
Can any of the company-specific risk be diversified away by investing in both Airports and Patrangsit Healthcare 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 Patrangsit Healthcare 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 Patrangsit Healthcare Group, you can compare the effects of market volatilities on Airports and Patrangsit Healthcare 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 Patrangsit Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Patrangsit Healthcare.
Diversification Opportunities for Airports and Patrangsit Healthcare
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Airports and Patrangsit is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Patrangsit Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patrangsit Healthcare 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 Patrangsit Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patrangsit Healthcare has no effect on the direction of Airports i.e., Airports and Patrangsit Healthcare go up and down completely randomly.
Pair Corralation between Airports and Patrangsit Healthcare
Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the Patrangsit Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Airports of Thailand is 48.14 times less risky than Patrangsit Healthcare. The stock trades about -0.03 of its potential returns per unit of risk. The Patrangsit Healthcare Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,106 in Patrangsit Healthcare Group on September 12, 2024 and sell it today you would earn a total of 444.00 from holding Patrangsit Healthcare Group or generate 40.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. Patrangsit Healthcare Group
Performance |
| Timeline |
| Airports of Thailand |
| Patrangsit Healthcare |
Airports and Patrangsit Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Patrangsit Healthcare
The main advantage of trading using opposite Airports and Patrangsit Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Patrangsit Healthcare 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 Patrangsit Healthcare will offset losses from the drop in Patrangsit Healthcare's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| Patrangsit Healthcare vs. Delta Electronics Public | Patrangsit Healthcare vs. Delta Electronics Public | Patrangsit Healthcare vs. Airports of Thailand | Patrangsit Healthcare 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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