Correlation Between Com7 PCL and Airports
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and Airports 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 Com7 PCL and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and Airports of Thailand, you can compare the effects of market volatilities on Com7 PCL and Airports 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 Com7 PCL with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and Airports.
Diversification Opportunities for Com7 PCL and Airports
Good diversification
The 3 months correlation between Com7 and Airports is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and Airports of Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airports of Thailand and Com7 PCL 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 Com7 PCL are associated (or correlated) with Airports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airports of Thailand has no effect on the direction of Com7 PCL i.e., Com7 PCL and Airports go up and down completely randomly.
Pair Corralation between Com7 PCL and Airports
Assuming the 90 days trading horizon Com7 PCL is expected to under-perform the Airports. In addition to that, Com7 PCL is 2.49 times more volatile than Airports of Thailand. It trades about -0.01 of its total potential returns per unit of risk. Airports of Thailand is currently generating about 0.01 per unit of volatility. If you would invest 6,150 in Airports of Thailand on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Airports of Thailand or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com7 PCL vs. Airports of Thailand
Performance |
| Timeline |
| Com7 PCL |
| Airports of Thailand |
Com7 PCL and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and Airports
The main advantage of trading using opposite Com7 PCL and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, Airports 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 Airports will offset losses from the drop in Airports' long position.| Com7 PCL vs. CP ALL Public | Com7 PCL vs. Home Product Center | Com7 PCL vs. Minor International Public | Com7 PCL vs. Bangkok Dusit Medical |
| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |