Correlation Between Syntec Construction and Asia Aviation
Can any of the company-specific risk be diversified away by investing in both Syntec Construction 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 Syntec Construction and Asia Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syntec Construction Public and Asia Aviation Public, you can compare the effects of market volatilities on Syntec Construction 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 Syntec Construction with a short position of Asia Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntec Construction and Asia Aviation.
Diversification Opportunities for Syntec Construction and Asia Aviation
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Syntec and Asia is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Construction Public 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 Syntec Construction 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 Syntec Construction Public 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 Syntec Construction i.e., Syntec Construction and Asia Aviation go up and down completely randomly.
Pair Corralation between Syntec Construction and Asia Aviation
Assuming the 90 days trading horizon Syntec Construction Public is expected to under-perform the Asia Aviation. But the stock apears to be less risky and, when comparing its historical volatility, Syntec Construction Public is 2.16 times less risky than Asia Aviation. The stock trades about -0.08 of its potential returns per unit of risk. The Asia Aviation Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 256.00 in Asia Aviation Public on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Asia Aviation Public or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syntec Construction Public vs. Asia Aviation Public
Performance |
| Timeline |
| Syntec Construction |
| Asia Aviation Public |
Syntec Construction and Asia Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syntec Construction and Asia Aviation
The main advantage of trading using opposite Syntec Construction and Asia Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syntec Construction 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.| Syntec Construction vs. Asia Aviation Public | Syntec Construction vs. Bangkok Dusit Medical | Syntec Construction vs. Bangkok Expressway and | Syntec Construction 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |