Correlation Between Airports and TTCL Public
Can any of the company-specific risk be diversified away by investing in both Airports and TTCL 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 TTCL 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 TTCL Public, you can compare the effects of market volatilities on Airports and TTCL 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 TTCL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and TTCL Public.
Diversification Opportunities for Airports and TTCL Public
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Airports and TTCL is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and TTCL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTCL 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 TTCL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTCL Public has no effect on the direction of Airports i.e., Airports and TTCL Public go up and down completely randomly.
Pair Corralation between Airports and TTCL Public
Assuming the 90 days trading horizon Airports is expected to generate 761.44 times less return on investment than TTCL Public. But when comparing it to its historical volatility, Airports of Thailand is 83.43 times less risky than TTCL Public. It trades about 0.01 of its potential returns per unit of risk. TTCL Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 386.00 in TTCL Public on September 5, 2024 and sell it today you would lose (152.00) from holding TTCL Public or give up 39.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Airports of Thailand vs. TTCL Public
Performance |
| Timeline |
| Airports of Thailand |
| TTCL Public |
Airports and TTCL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and TTCL Public
The main advantage of trading using opposite Airports and TTCL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, TTCL 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 TTCL Public will offset losses from the drop in TTCL Public's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| TTCL Public vs. Asia Aviation Public | TTCL Public vs. Bangkok Dusit Medical | TTCL Public vs. Bangkok Expressway and | TTCL 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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