Correlation Between Dcon Products and Airports
Can any of the company-specific risk be diversified away by investing in both Dcon Products 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 Dcon Products and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dcon Products Public and Airports of Thailand, you can compare the effects of market volatilities on Dcon Products 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 Dcon Products with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dcon Products and Airports.
Diversification Opportunities for Dcon Products and Airports
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dcon and Airports is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dcon Products Public 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 Dcon Products 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 Dcon Products Public 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 Dcon Products i.e., Dcon Products and Airports go up and down completely randomly.
Pair Corralation between Dcon Products and Airports
Assuming the 90 days trading horizon Dcon Products Public is expected to generate 81.58 times more return on investment than Airports. However, Dcon Products is 81.58 times more volatile than Airports of Thailand. It trades about 0.08 of its potential returns per unit of risk. Airports of Thailand is currently generating about -0.03 per unit of risk. If you would invest 39.00 in Dcon Products Public on August 29, 2024 and sell it today you would lose (9.00) from holding Dcon Products Public or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dcon Products Public vs. Airports of Thailand
Performance |
| Timeline |
| Dcon Products Public |
| Airports of Thailand |
Dcon Products and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dcon Products and Airports
The main advantage of trading using opposite Dcon Products and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dcon Products 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.| Dcon Products vs. Dynasty Ceramic Public | Dcon Products vs. Chonburi Concrete Product | Dcon Products vs. General Engineering Public | Dcon Products vs. Eastern Star Real |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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