Correlation Between Airports and Pylon Public
Can any of the company-specific risk be diversified away by investing in both Airports and Pylon 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 Pylon 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 Pylon Public, you can compare the effects of market volatilities on Airports and Pylon 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 Pylon Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Pylon Public.
Diversification Opportunities for Airports and Pylon Public
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Airports and Pylon is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Pylon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pylon 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 Pylon Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pylon Public has no effect on the direction of Airports i.e., Airports and Pylon Public go up and down completely randomly.
Pair Corralation between Airports and Pylon Public
Assuming the 90 days trading horizon Airports of Thailand is expected to generate 0.76 times more return on investment than Pylon Public. However, Airports of Thailand is 1.32 times less risky than Pylon Public. It trades about 0.01 of its potential returns per unit of risk. Pylon Public is currently generating about -0.47 per unit of risk. If you would invest 6,150 in Airports of Thailand on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Airports of Thailand or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Airports of Thailand vs. Pylon Public
Performance |
| Timeline |
| Airports of Thailand |
| Pylon Public |
Airports and Pylon Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Pylon Public
The main advantage of trading using opposite Airports and Pylon Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Pylon 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 Pylon Public will offset losses from the drop in Pylon Public's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| Pylon Public vs. Tata Steel Public | Pylon Public vs. Thaifoods Group Public | Pylon Public vs. TMT Steel Public | Pylon Public vs. The Erawan Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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