Correlation Between Haad Thip and Airports
Can any of the company-specific risk be diversified away by investing in both Haad Thip 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 Haad Thip and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haad Thip Public and Airports of Thailand, you can compare the effects of market volatilities on Haad Thip 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 Haad Thip with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Airports.
Diversification Opportunities for Haad Thip and Airports
Average diversification
The 3 months correlation between Haad and Airports is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip 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 Haad Thip 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 Haad Thip 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 Haad Thip i.e., Haad Thip and Airports go up and down completely randomly.
Pair Corralation between Haad Thip and Airports
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 1.13 times more return on investment than Airports. However, Haad Thip is 1.13 times more volatile than Airports of Thailand. It trades about 0.03 of its potential returns per unit of risk. Airports of Thailand is currently generating about 0.02 per unit of risk. If you would invest 1,463 in Haad Thip Public on September 4, 2024 and sell it today you would earn a total of 137.00 from holding Haad Thip Public or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Airports of Thailand
Performance |
| Timeline |
| Haad Thip Public |
| Airports of Thailand |
Haad Thip and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Airports
The main advantage of trading using opposite Haad Thip and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip 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.| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group Public |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |