Correlation Between Airports and Berli Jucker

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

Diversification Opportunities for Airports and Berli Jucker

0.5

Correlation Coefficient

Airports  Berli Jucker

Very weak diversification

The 3 months correlation between Airports and Berli is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Berli Jucker Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker Public 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 Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker Public has no effect on the direction of Airports i.e., Airports and Berli Jucker go up and down completely randomly.

Pair Corralation between Airports and Berli Jucker

Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the Berli Jucker. In addition to that, Airports is 1.41 times more volatile than Berli Jucker Public. It trades about -0.24 of its total potential returns per unit of risk. Berli Jucker Public is currently generating about -0.03 per unit of volatility. If you would invest  2,330  in Berli Jucker Public on December 30, 2024 and sell it today you would lose (100.00) from holding Berli Jucker Public or give up 4.29% of portfolio value over 90 days.

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

Airports of Thailand  vs.  Berli Jucker Public

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 basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Berli Jucker Public

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Airports and Berli Jucker

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

The idea behind Airports of Thailand and Berli Jucker 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.