Correlation Between Asia Hotel and Central Pattana
Can any of the company-specific risk be diversified away by investing in both Asia Hotel and Central Pattana 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 Asia Hotel and Central Pattana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Hotel Public and Central Pattana Public, you can compare the effects of market volatilities on Asia Hotel and Central Pattana 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 Asia Hotel with a short position of Central Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Hotel and Central Pattana.
Diversification Opportunities for Asia Hotel and Central Pattana
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asia and Central is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Asia Hotel Public and Central Pattana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Pattana Public and Asia Hotel 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 Asia Hotel Public are associated (or correlated) with Central Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Pattana Public has no effect on the direction of Asia Hotel i.e., Asia Hotel and Central Pattana go up and down completely randomly.
Pair Corralation between Asia Hotel and Central Pattana
Assuming the 90 days trading horizon Asia Hotel Public is expected to generate 49.95 times more return on investment than Central Pattana. However, Asia Hotel is 49.95 times more volatile than Central Pattana Public. It trades about 0.07 of its potential returns per unit of risk. Central Pattana Public is currently generating about -0.01 per unit of risk. If you would invest 750.00 in Asia Hotel Public on September 4, 2024 and sell it today you would lose (90.00) from holding Asia Hotel Public or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Asia Hotel Public vs. Central Pattana Public
Performance |
| Timeline |
| Asia Hotel Public |
| Central Pattana Public |
Asia Hotel and Central Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Hotel and Central Pattana
The main advantage of trading using opposite Asia Hotel and Central Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Hotel position performs unexpectedly, Central Pattana 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 Central Pattana will offset losses from the drop in Central Pattana's long position.| Asia Hotel vs. Central Pattana Public | Asia Hotel vs. CP ALL Public | Asia Hotel vs. Bangkok Dusit Medical | Asia Hotel vs. Airports of Thailand |
| Central Pattana vs. CP ALL Public | Central Pattana vs. Bangkok Dusit Medical | Central Pattana vs. Airports of Thailand | Central Pattana vs. Advanced Info Service |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |