Correlation Between Asia Sermkij and BA Airport
Can any of the company-specific risk be diversified away by investing in both Asia Sermkij and BA Airport 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 Asia Sermkij and BA Airport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Sermkij Leasing and BA Airport Leasehold, you can compare the effects of market volatilities on Asia Sermkij and BA Airport 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 Asia Sermkij with a short position of BA Airport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Sermkij and BA Airport.
Diversification Opportunities for Asia Sermkij and BA Airport
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asia and BAREIT is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Asia Sermkij Leasing and BA Airport Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BA Airport Leasehold and Asia Sermkij 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 Asia Sermkij Leasing are associated (or correlated) with BA Airport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BA Airport Leasehold has no effect on the direction of Asia Sermkij i.e., Asia Sermkij and BA Airport go up and down completely randomly.
Pair Corralation between Asia Sermkij and BA Airport
Assuming the 90 days trading horizon Asia Sermkij Leasing is expected to under-perform the BA Airport. In addition to that, Asia Sermkij is 3.11 times more volatile than BA Airport Leasehold. It trades about -0.21 of its total potential returns per unit of risk. BA Airport Leasehold is currently generating about -0.02 per unit of volatility. If you would invest 961.00 in BA Airport Leasehold on September 13, 2024 and sell it today you would lose (11.00) from holding BA Airport Leasehold or give up 1.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Asia Sermkij Leasing vs. BA Airport Leasehold
Performance |
Timeline |
Asia Sermkij Leasing |
BA Airport Leasehold |
Asia Sermkij and BA Airport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asia Sermkij and BA Airport
The main advantage of trading using opposite Asia Sermkij and BA Airport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Sermkij position performs unexpectedly, BA Airport 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 BA Airport will offset losses from the drop in BA Airport's long position.Asia Sermkij vs. KGI Securities Public | Asia Sermkij vs. Lalin Property Public | Asia Sermkij vs. Hwa Fong Rubber | Asia Sermkij vs. MCS Steel Public |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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