Correlation Between Airports and WIIK Public
Can any of the company-specific risk be diversified away by investing in both Airports and WIIK 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 WIIK 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 WIIK Public, you can compare the effects of market volatilities on Airports and WIIK 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 WIIK Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and WIIK Public.
Diversification Opportunities for Airports and WIIK Public
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Airports and WIIK is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and WIIK Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIIK 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 WIIK Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIIK Public has no effect on the direction of Airports i.e., Airports and WIIK Public go up and down completely randomly.
Pair Corralation between Airports and WIIK Public
Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the WIIK Public. But the stock apears to be less risky and, when comparing its historical volatility, Airports of Thailand is 1.34 times less risky than WIIK Public. The stock trades about -0.02 of its potential returns per unit of risk. The WIIK Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 112.00 in WIIK Public on September 4, 2024 and sell it today you would lose (1.00) from holding WIIK Public or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. WIIK Public
Performance |
| Timeline |
| Airports of Thailand |
| WIIK Public |
Airports and WIIK Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and WIIK Public
The main advantage of trading using opposite Airports and WIIK Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, WIIK 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 WIIK Public will offset losses from the drop in WIIK Public's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| WIIK Public vs. Asia Aviation Public | WIIK Public vs. Bangkok Dusit Medical | WIIK Public vs. Bangkok Expressway and | WIIK 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets |