Correlation Between Asia Hotel and Phatra Leasing
Can any of the company-specific risk be diversified away by investing in both Asia Hotel and Phatra Leasing 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 Phatra Leasing 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 Phatra Leasing Public, you can compare the effects of market volatilities on Asia Hotel and Phatra Leasing 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 Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Hotel and Phatra Leasing.
Diversification Opportunities for Asia Hotel and Phatra Leasing
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Phatra is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Asia Hotel Public and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing 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 Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of Asia Hotel i.e., Asia Hotel and Phatra Leasing go up and down completely randomly.
Pair Corralation between Asia Hotel and Phatra Leasing
Assuming the 90 days trading horizon Asia Hotel Public is expected to generate 1.41 times more return on investment than Phatra Leasing. However, Asia Hotel is 1.41 times more volatile than Phatra Leasing Public. It trades about 0.06 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about 0.04 per unit of risk. If you would invest 769.00 in Asia Hotel Public on October 9, 2024 and sell it today you would lose (129.00) from holding Asia Hotel Public or give up 16.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.96% |
| Values | Daily Returns |
Asia Hotel Public vs. Phatra Leasing Public
Performance |
| Timeline |
| Asia Hotel Public |
| Phatra Leasing Public |
Asia Hotel and Phatra Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Hotel and Phatra Leasing
The main advantage of trading using opposite Asia Hotel and Phatra Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Hotel position performs unexpectedly, Phatra Leasing 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 Phatra Leasing will offset losses from the drop in Phatra Leasing's long position.| Asia Hotel vs. Aikchol Hospital Public | Asia Hotel vs. The Erawan Group | Asia Hotel vs. Dynasty Ceramic Public | Asia Hotel vs. Grande Asset Hotels |
| Phatra Leasing vs. Jasmine Telecom Systems | Phatra Leasing vs. Chiangmai Frozen Foods | Phatra Leasing vs. Asia Hotel Public | Phatra Leasing vs. Vichitbhan Palmoil Public |
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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