Correlation Between Sabuy Technology and Airports
Can any of the company-specific risk be diversified away by investing in both Sabuy 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 Sabuy Technology and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabuy Technology Public and Airports of Thailand, you can compare the effects of market volatilities on Sabuy 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 Sabuy Technology with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabuy Technology and Airports.
Diversification Opportunities for Sabuy Technology and Airports
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabuy and Airports is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sabuy 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 Sabuy 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 Sabuy 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 Sabuy Technology i.e., Sabuy Technology and Airports go up and down completely randomly.
Pair Corralation between Sabuy Technology and Airports
Assuming the 90 days trading horizon Sabuy Technology Public is expected to under-perform the Airports. In addition to that, Sabuy Technology is 4.05 times more volatile than Airports of Thailand. It trades about -0.48 of its total potential returns per unit of risk. Airports of Thailand is currently generating about -0.03 per unit of volatility. If you would invest 6,175 in Airports of Thailand on August 29, 2024 and sell it today you would lose (50.00) from holding Airports of Thailand or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabuy Technology Public vs. Airports of Thailand
Performance |
| Timeline |
| Sabuy Technology Public |
| Airports of Thailand |
Sabuy Technology and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabuy Technology and Airports
The main advantage of trading using opposite Sabuy Technology and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabuy 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.| Sabuy Technology vs. Kulthorn Kirby Public | Sabuy Technology vs. The Erawan Group | Sabuy Technology vs. Airports of Thailand | Sabuy Technology vs. Eastern Technical Engineering |
| Airports vs. Tata Steel Public | Airports vs. Thaifoods Group Public | Airports vs. TMT Steel Public | Airports vs. The Erawan Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |