Correlation Between Airports and Techno Medical
Can any of the company-specific risk be diversified away by investing in both Airports and Techno Medical 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 Techno Medical 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 Techno Medical Public, you can compare the effects of market volatilities on Airports and Techno Medical 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 Techno Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Techno Medical.
Diversification Opportunities for Airports and Techno Medical
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Airports and Techno is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Techno Medical Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Medical 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 Techno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Medical Public has no effect on the direction of Airports i.e., Airports and Techno Medical go up and down completely randomly.
Pair Corralation between Airports and Techno Medical
Assuming the 90 days trading horizon Airports of Thailand is expected to generate 0.59 times more return on investment than Techno Medical. However, Airports of Thailand is 1.69 times less risky than Techno Medical. It trades about -0.01 of its potential returns per unit of risk. Techno Medical Public is currently generating about -0.26 per unit of risk. If you would invest 6,225 in Airports of Thailand on September 5, 2024 and sell it today you would lose (25.00) from holding Airports of Thailand or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Airports of Thailand vs. Techno Medical Public
Performance |
| Timeline |
| Airports of Thailand |
| Techno Medical Public |
Airports and Techno Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Techno Medical
The main advantage of trading using opposite Airports and Techno Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Techno Medical 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 Techno Medical will offset losses from the drop in Techno Medical's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| Techno Medical vs. Asia Aviation Public | Techno Medical vs. Bangkok Dusit Medical | Techno Medical vs. Bangkok Expressway and | Techno Medical 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.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |