Correlation Between Asia Hotel and Workpoint Entertainment
Can any of the company-specific risk be diversified away by investing in both Asia Hotel and Workpoint Entertainment 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 Workpoint Entertainment 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 Workpoint Entertainment Public, you can compare the effects of market volatilities on Asia Hotel and Workpoint Entertainment 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 Workpoint Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Hotel and Workpoint Entertainment.
Diversification Opportunities for Asia Hotel and Workpoint Entertainment
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Workpoint is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Asia Hotel Public and Workpoint Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workpoint Entertainment 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 Workpoint Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workpoint Entertainment has no effect on the direction of Asia Hotel i.e., Asia Hotel and Workpoint Entertainment go up and down completely randomly.
Pair Corralation between Asia Hotel and Workpoint Entertainment
Assuming the 90 days trading horizon Asia Hotel Public is expected to generate 0.62 times more return on investment than Workpoint Entertainment. However, Asia Hotel Public is 1.62 times less risky than Workpoint Entertainment. It trades about 0.05 of its potential returns per unit of risk. Workpoint Entertainment Public is currently generating about -0.35 per unit of risk. If you would invest 665.00 in Asia Hotel Public on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Asia Hotel Public or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Hotel Public vs. Workpoint Entertainment Public
Performance |
| Timeline |
| Asia Hotel Public |
| Workpoint Entertainment |
Asia Hotel and Workpoint Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Hotel and Workpoint Entertainment
The main advantage of trading using opposite Asia Hotel and Workpoint Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Hotel position performs unexpectedly, Workpoint Entertainment 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 Workpoint Entertainment will offset losses from the drop in Workpoint Entertainment's long position.| Asia Hotel vs. TRC Construction Public | Asia Hotel vs. Bangkok Expressway and | Asia Hotel vs. Lohakit Metal Public | Asia Hotel vs. Gunkul Engineering Public |
| Workpoint Entertainment vs. Bangkok Chain Hospital | Workpoint Entertainment vs. Grande Asset Hotels | Workpoint Entertainment vs. Better World Green | Workpoint Entertainment vs. Chularat Hospital 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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