Correlation Between Thoresen Thai and Asia Aviation
Can any of the company-specific risk be diversified away by investing in both Thoresen Thai 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 Thoresen Thai and Asia Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thoresen Thai Agencies and Asia Aviation Public, you can compare the effects of market volatilities on Thoresen Thai 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 Thoresen Thai with a short position of Asia Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thoresen Thai and Asia Aviation.
Diversification Opportunities for Thoresen Thai and Asia Aviation
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thoresen and Asia is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Thoresen Thai Agencies 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 Thoresen Thai 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 Thoresen Thai Agencies 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 Thoresen Thai i.e., Thoresen Thai and Asia Aviation go up and down completely randomly.
Pair Corralation between Thoresen Thai and Asia Aviation
Assuming the 90 days trading horizon Thoresen Thai Agencies is expected to generate 1.56 times more return on investment than Asia Aviation. However, Thoresen Thai is 1.56 times more volatile than Asia Aviation Public. It trades about 0.14 of its potential returns per unit of risk. Asia Aviation Public is currently generating about -0.01 per unit of risk. If you would invest 550.00 in Thoresen Thai Agencies on September 5, 2024 and sell it today you would earn a total of 45.00 from holding Thoresen Thai Agencies or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thoresen Thai Agencies vs. Asia Aviation Public
Performance |
| Timeline |
| Thoresen Thai Agencies |
| Asia Aviation Public |
Thoresen Thai and Asia Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thoresen Thai and Asia Aviation
The main advantage of trading using opposite Thoresen Thai and Asia Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thoresen Thai 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.| Thoresen Thai vs. Asia Aviation Public | Thoresen Thai vs. Bangkok Dusit Medical | Thoresen Thai vs. Bangkok Expressway and | Thoresen Thai 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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