Correlation Between Bangkok Expressway and Asia Aviation
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Asia Aviation 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 Bangkok Expressway and Asia Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Expressway and and Asia Aviation Public, you can compare the effects of market volatilities on Bangkok Expressway and Asia Aviation 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 Bangkok Expressway with a short position of Asia Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Asia Aviation.
Diversification Opportunities for Bangkok Expressway and Asia Aviation
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangkok and Asia is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Asia Aviation Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Aviation Public and Bangkok Expressway 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 Bangkok Expressway and are associated (or correlated) with Asia Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Aviation Public has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Asia Aviation go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Asia Aviation
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the Asia Aviation. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 64.85 times less risky than Asia Aviation. The stock trades about -0.02 of its potential returns per unit of risk. The Asia Aviation Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 226.00 in Asia Aviation Public on August 29, 2024 and sell it today you would earn a total of 54.00 from holding Asia Aviation Public or generate 23.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Asia Aviation Public
Performance |
| Timeline |
| Bangkok Expressway and |
| Asia Aviation Public |
Bangkok Expressway and Asia Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Asia Aviation
The main advantage of trading using opposite Bangkok Expressway and Asia Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Asia Aviation 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 Asia Aviation will offset losses from the drop in Asia Aviation's long position.| Bangkok Expressway vs. BTS Group Holdings | Bangkok Expressway vs. Bangkok Dusit Medical | Bangkok Expressway vs. Airports of Thailand | Bangkok Expressway vs. CP ALL Public |
| Asia Aviation vs. MCS Steel Public | Asia Aviation vs. Asia Plus Group | Asia Aviation vs. Lalin Property Public | Asia Aviation vs. Lam Soon 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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