Correlation Between Premier Technology and Airports
Can any of the company-specific risk be diversified away by investing in both Premier Technology 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 Premier Technology and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Technology Public and Airports of Thailand, you can compare the effects of market volatilities on Premier Technology 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 Premier Technology with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Technology and Airports.
Diversification Opportunities for Premier Technology and Airports
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Premier and Airports is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Premier Technology 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 Premier Technology 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 Premier Technology 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 Premier Technology i.e., Premier Technology and Airports go up and down completely randomly.
Pair Corralation between Premier Technology and Airports
Assuming the 90 days horizon Premier Technology Public is expected to generate 0.68 times more return on investment than Airports. However, Premier Technology Public is 1.48 times less risky than Airports. It trades about 0.09 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 955.00 in Premier Technology Public on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Premier Technology Public or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Technology Public vs. Airports of Thailand
Performance |
| Timeline |
| Premier Technology Public |
| Airports of Thailand |
Premier Technology and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Technology and Airports
The main advantage of trading using opposite Premier Technology and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Technology 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.| Premier Technology vs. Thanachart Capital Public | Premier Technology vs. Quality Houses Public | Premier Technology vs. Tipco Asphalt Public | Premier Technology vs. Synnex 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |