Correlation Between Airports and WHA Public
Can any of the company-specific risk be diversified away by investing in both Airports and WHA 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 WHA 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 WHA Public, you can compare the effects of market volatilities on Airports and WHA 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 WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and WHA Public.
Diversification Opportunities for Airports and WHA Public
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Airports and WHA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA 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 WHA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Public has no effect on the direction of Airports i.e., Airports and WHA Public go up and down completely randomly.
Pair Corralation between Airports and WHA Public
Assuming the 90 days trading horizon Airports of Thailand is expected to generate 0.51 times more return on investment than WHA Public. However, Airports of Thailand is 1.98 times less risky than WHA Public. It trades about -0.01 of its potential returns per unit of risk. WHA Public is currently generating about -0.02 per unit of risk. If you would invest 6,150 in Airports of Thailand on August 31, 2024 and sell it today you would lose (25.00) from holding Airports of Thailand or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. WHA Public
Performance |
| Timeline |
| Airports of Thailand |
| WHA Public |
Airports and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and WHA Public
The main advantage of trading using opposite Airports and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, WHA 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 WHA Public will offset losses from the drop in WHA Public's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| WHA Public vs. Land and Houses | WHA Public vs. Quality Houses Public | WHA Public vs. Bangkok Bank Public | WHA Public vs. Siri Prime Office |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |