Correlation Between Gunkul Engineering and Asia Aviation
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering 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 Gunkul Engineering and Asia Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunkul Engineering Public and Asia Aviation Public, you can compare the effects of market volatilities on Gunkul Engineering 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 Gunkul Engineering with a short position of Asia Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Asia Aviation.
Diversification Opportunities for Gunkul Engineering and Asia Aviation
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gunkul and Asia is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering 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 Gunkul Engineering 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 Gunkul Engineering 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 Gunkul Engineering i.e., Gunkul Engineering and Asia Aviation go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Asia Aviation
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Asia Aviation. But the stock apears to be less risky and, when comparing its historical volatility, Gunkul Engineering Public is 29.29 times less risky than Asia Aviation. The stock trades about 0.0 of its potential returns per unit of risk. The Asia Aviation Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 196.00 in Asia Aviation Public on August 25, 2024 and sell it today you would earn a total of 92.00 from holding Asia Aviation Public or generate 46.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Asia Aviation Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Asia Aviation Public |
Gunkul Engineering and Asia Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Asia Aviation
The main advantage of trading using opposite Gunkul Engineering and Asia Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering 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.| Gunkul Engineering vs. Gulf Energy Development | Gunkul Engineering vs. Energy Absolute Public | Gunkul Engineering vs. Banpu Public | Gunkul Engineering vs. WHA Public |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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