Correlation Between AIM Commercial and Dusit Thani
Can any of the company-specific risk be diversified away by investing in both AIM Commercial and Dusit Thani 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 AIM Commercial and Dusit Thani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM Commercial Growth and Dusit Thani Freehold, you can compare the effects of market volatilities on AIM Commercial and Dusit Thani 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 AIM Commercial with a short position of Dusit Thani. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Commercial and Dusit Thani.
Diversification Opportunities for AIM Commercial and Dusit Thani
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AIM and Dusit is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AIM Commercial Growth and Dusit Thani Freehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dusit Thani Freehold and AIM Commercial 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 AIM Commercial Growth are associated (or correlated) with Dusit Thani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dusit Thani Freehold has no effect on the direction of AIM Commercial i.e., AIM Commercial and Dusit Thani go up and down completely randomly.
Pair Corralation between AIM Commercial and Dusit Thani
Assuming the 90 days trading horizon AIM Commercial Growth is expected to under-perform the Dusit Thani. But the stock apears to be less risky and, when comparing its historical volatility, AIM Commercial Growth is 1.17 times less risky than Dusit Thani. The stock trades about 0.0 of its potential returns per unit of risk. The Dusit Thani Freehold is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Dusit Thani Freehold on September 4, 2024 and sell it today you would earn a total of 13.00 from holding Dusit Thani Freehold or generate 2.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
AIM Commercial Growth vs. Dusit Thani Freehold
Performance |
Timeline |
AIM Commercial Growth |
Dusit Thani Freehold |
AIM Commercial and Dusit Thani Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AIM Commercial and Dusit Thani
The main advantage of trading using opposite AIM Commercial and Dusit Thani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM Commercial position performs unexpectedly, Dusit Thani 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 Dusit Thani will offset losses from the drop in Dusit Thani's long position.AIM Commercial vs. AIM Industrial Growth | AIM Commercial vs. Amata Summit Growth | AIM Commercial vs. Quality Houses Property | AIM Commercial vs. Ally Leasehold Real |
Dusit Thani vs. CPN Retail Growth | Dusit Thani vs. Grande Hospitality Real | Dusit Thani vs. The Erawan Group | Dusit Thani vs. Impact Growth REIT |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |