Correlation Between Airports and Airports
Can any of the company-specific risk be diversified away by investing in both Airports 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 Airports and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airports of Thailand and Airports of Thailand, you can compare the effects of market volatilities on Airports 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 Airports with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Airports.
Diversification Opportunities for Airports and Airports
Almost no diversification
The 3 months correlation between Airports and Airports is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand 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 Airports 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 Airports of Thailand 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 Airports i.e., Airports and Airports go up and down completely randomly.
Pair Corralation between Airports and Airports
Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the Airports. In addition to that, Airports is 1.42 times more volatile than Airports of Thailand. It trades about -0.05 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 161.00 in Airports of Thailand on November 9, 2024 and sell it today you would lose (3.00) from holding Airports of Thailand or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. Airports of Thailand
Performance |
| Timeline |
| Airports of Thailand |
| Airports of Thailand |
Airports and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Airports
The main advantage of trading using opposite Airports and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports 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.| Airports vs. Airports of Thailand | Airports vs. Auckland International Airport | Airports vs. Aena SME SA | Airports vs. Ryanair Holdings plc |
| Airports vs. Japan Medical Dynamic | Airports vs. FIRST SHIP LEASE | Airports vs. ONWARD MEDICAL BV | Airports vs. Peijia Medical Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |