Correlation Between Minor International and Airports
Can any of the company-specific risk be diversified away by investing in both Minor International 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 Minor International and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International Public and Airports of Thailand, you can compare the effects of market volatilities on Minor International 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 Minor International with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Airports.
Diversification Opportunities for Minor International and Airports
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minor and Airports is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Minor International 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 Minor International 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 Minor International 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 Minor International i.e., Minor International and Airports go up and down completely randomly.
Pair Corralation between Minor International and Airports
Assuming the 90 days trading horizon Minor International Public is expected to generate 1.18 times more return on investment than Airports. However, Minor International is 1.18 times more volatile than Airports of Thailand. It trades about 0.0 of its potential returns per unit of risk. Airports of Thailand is currently generating about -0.08 per unit of risk. If you would invest 2,969 in Minor International Public on November 27, 2024 and sell it today you would lose (94.00) from holding Minor International Public or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minor International Public vs. Airports of Thailand
Performance |
| Timeline |
| Minor International |
| Airports of Thailand |
Minor International and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and Airports
The main advantage of trading using opposite Minor International and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International 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.| Minor International vs. CP ALL Public | Minor International vs. Bangkok Dusit Medical | Minor International vs. Airports of Thailand | Minor International vs. Kasikornbank 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |