Correlation Between Namyong Terminal and Asia Aviation
Can any of the company-specific risk be diversified away by investing in both Namyong Terminal 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 Namyong Terminal and Asia Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namyong Terminal PCL and Asia Aviation Public, you can compare the effects of market volatilities on Namyong Terminal 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 Namyong Terminal with a short position of Asia Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namyong Terminal and Asia Aviation.
Diversification Opportunities for Namyong Terminal and Asia Aviation
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Namyong and Asia is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Namyong Terminal PCL 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 Namyong Terminal 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 Namyong Terminal PCL 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 Namyong Terminal i.e., Namyong Terminal and Asia Aviation go up and down completely randomly.
Pair Corralation between Namyong Terminal and Asia Aviation
Assuming the 90 days trading horizon Namyong Terminal PCL is expected to under-perform the Asia Aviation. But the stock apears to be less risky and, when comparing its historical volatility, Namyong Terminal PCL is 29.48 times less risky than Asia Aviation. The stock trades about -0.03 of its potential returns per unit of risk. The Asia Aviation Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 290.00 in Asia Aviation Public on September 4, 2024 and sell it today you would lose (14.00) from holding Asia Aviation Public or give up 4.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Namyong Terminal PCL vs. Asia Aviation Public
Performance |
| Timeline |
| Namyong Terminal PCL |
| Asia Aviation Public |
Namyong Terminal and Asia Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namyong Terminal and Asia Aviation
The main advantage of trading using opposite Namyong Terminal and Asia Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namyong Terminal 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.| Namyong Terminal vs. Asia Aviation Public | Namyong Terminal vs. Bangkok Dusit Medical | Namyong Terminal vs. Bangkok Expressway and | Namyong Terminal 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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