Correlation Between AIRA Factoring and Akkhie Prakarn

Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Akkhie Prakarn 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 AIRA Factoring and Akkhie Prakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AIRA Factoring Public and Akkhie Prakarn Public, you can compare the effects of market volatilities on AIRA Factoring and Akkhie Prakarn 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 AIRA Factoring with a short position of Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Akkhie Prakarn.

Diversification Opportunities for AIRA Factoring and Akkhie Prakarn

0.1

Correlation Coefficient

AIRA Factoring  Akkhie Prakarn

Average diversification

The 3 months correlation between AIRA and Akkhie is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Akkhie Prakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akkhie Prakarn Public and AIRA Factoring 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 AIRA Factoring Public are associated (or correlated) with Akkhie Prakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akkhie Prakarn Public has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Akkhie Prakarn go up and down completely randomly.

Pair Corralation between AIRA Factoring and Akkhie Prakarn

Assuming the 90 days horizon AIRA Factoring Public is expected to generate 1.36 times more return on investment than Akkhie Prakarn. However, AIRA Factoring is 1.36 times more volatile than Akkhie Prakarn Public. It trades about 0.01 of its potential returns per unit of risk. Akkhie Prakarn Public is currently generating about -0.04 per unit of risk. If you would invest  58.00  in AIRA Factoring Public on November 29, 2024 and sell it today you would lose (2.00) from holding AIRA Factoring Public or give up 3.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AIRA Factoring Public  vs.  Akkhie Prakarn Public

AIRA Factoring Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days AIRA Factoring Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, AIRA Factoring is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Akkhie Prakarn Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akkhie Prakarn Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with AIRA Factoring and Akkhie Prakarn

The main advantage of trading using opposite AIRA Factoring and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Akkhie Prakarn 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 Akkhie Prakarn will offset losses from the drop in Akkhie Prakarn's long position.

The idea behind AIRA Factoring Public and Akkhie Prakarn Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.