Correlation Between Airports and Bless Asset

Can any of the company-specific risk be diversified away by investing in both Airports and Bless Asset 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 Bless Asset 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 Bless Asset Group, you can compare the effects of market volatilities on Airports and Bless Asset 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 Bless Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Bless Asset.

Diversification Opportunities for Airports and Bless Asset

0.79

Correlation Coefficient

Airports  Bless Asset

Poor diversification

The 3 months correlation between Airports and Bless is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Bless Asset Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bless Asset Group 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 Bless Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bless Asset Group has no effect on the direction of Airports i.e., Airports and Bless Asset go up and down completely randomly.

Pair Corralation between Airports and Bless Asset

Assuming the 90 days trading horizon Airports of Thailand is expected to generate 0.55 times more return on investment than Bless Asset. However, Airports of Thailand is 1.81 times less risky than Bless Asset. It trades about -0.23 of its potential returns per unit of risk. Bless Asset Group is currently generating about -0.13 per unit of risk. If you would invest  6,182  in Airports of Thailand on December 4, 2024 and sell it today you would lose (1,482) from holding Airports of Thailand or give up 23.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	83.05%
Values	Daily Returns

Airports of Thailand  vs.  Bless Asset Group

Airports of Thailand

Risk-Adjusted Performance

Very Weak

Over the last 90 days Airports of Thailand has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bless Asset Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bless Asset Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Airports and Bless Asset

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

The idea behind Airports of Thailand and Bless Asset Group 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.