Correlation Between Gratitude Infinite and Asia Aviation
Can any of the company-specific risk be diversified away by investing in both Gratitude Infinite 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 Gratitude Infinite and Asia Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gratitude Infinite Public and Asia Aviation Public, you can compare the effects of market volatilities on Gratitude Infinite 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 Gratitude Infinite with a short position of Asia Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gratitude Infinite and Asia Aviation.
Diversification Opportunities for Gratitude Infinite and Asia Aviation
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gratitude and Asia is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gratitude Infinite Public 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 Gratitude Infinite 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 Gratitude Infinite Public 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 Gratitude Infinite i.e., Gratitude Infinite and Asia Aviation go up and down completely randomly.
Pair Corralation between Gratitude Infinite and Asia Aviation
Assuming the 90 days trading horizon Gratitude Infinite Public is expected to under-perform the Asia Aviation. In addition to that, Gratitude Infinite is 2.29 times more volatile than Asia Aviation Public. It trades about -0.62 of its total potential returns per unit of risk. Asia Aviation Public is currently generating about -0.11 per unit of volatility. If you would invest 288.00 in Asia Aviation Public on September 4, 2024 and sell it today you would lose (12.00) from holding Asia Aviation Public or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gratitude Infinite Public vs. Asia Aviation Public
Performance |
| Timeline |
| Gratitude Infinite Public |
| Asia Aviation Public |
Gratitude Infinite and Asia Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gratitude Infinite and Asia Aviation
The main advantage of trading using opposite Gratitude Infinite and Asia Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gratitude Infinite 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.| Gratitude Infinite vs. Asia Aviation Public | Gratitude Infinite vs. Bangkok Dusit Medical | Gratitude Infinite vs. Bangkok Expressway and | Gratitude Infinite vs. Airports of Thailand |
| Asia Aviation vs. Airports of Thailand | Asia Aviation vs. Bangkok Expressway and | Asia Aviation vs. BTS Group Holdings | Asia Aviation vs. Bangkok Airways 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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