Correlation Between Yggdrazil Group and Airports
Can any of the company-specific risk be diversified away by investing in both Yggdrazil Group 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 Yggdrazil Group and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yggdrazil Group Public and Airports of Thailand, you can compare the effects of market volatilities on Yggdrazil Group 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 Yggdrazil Group with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yggdrazil Group and Airports.
Diversification Opportunities for Yggdrazil Group and Airports
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yggdrazil and Airports is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Yggdrazil Group 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 Yggdrazil Group 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 Yggdrazil Group 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 Yggdrazil Group i.e., Yggdrazil Group and Airports go up and down completely randomly.
Pair Corralation between Yggdrazil Group and Airports
Assuming the 90 days trading horizon Yggdrazil Group Public is expected to under-perform the Airports. In addition to that, Yggdrazil Group is 3.49 times more volatile than Airports of Thailand. It trades about -0.09 of its total potential returns per unit of risk. Airports of Thailand is currently generating about -0.09 per unit of volatility. If you would invest 6,225 in Airports of Thailand on September 3, 2024 and sell it today you would lose (150.00) from holding Airports of Thailand or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yggdrazil Group Public vs. Airports of Thailand
Performance |
| Timeline |
| Yggdrazil Group Public |
| Airports of Thailand |
Yggdrazil Group and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yggdrazil Group and Airports
The main advantage of trading using opposite Yggdrazil Group and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yggdrazil Group 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.| Yggdrazil Group vs. Jay Mart Public | Yggdrazil Group vs. Exotic Food Public | Yggdrazil Group vs. WICE Logistics PCL | Yggdrazil Group vs. VGI 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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