Correlation Between Big Camera and Asia Aviation
Can any of the company-specific risk be diversified away by investing in both Big Camera and Asia Aviation 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 Big Camera and Asia Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Camera and Asia Aviation Public, you can compare the effects of market volatilities on Big Camera and Asia Aviation 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 Big Camera with a short position of Asia Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Camera and Asia Aviation.
Diversification Opportunities for Big Camera and Asia Aviation
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Big and Asia is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Big Camera and Asia Aviation Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Aviation Public and Big Camera 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 Big Camera are associated (or correlated) with Asia Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Aviation Public has no effect on the direction of Big Camera i.e., Big Camera and Asia Aviation go up and down completely randomly.
Pair Corralation between Big Camera and Asia Aviation
Assuming the 90 days trading horizon Big Camera is expected to under-perform the Asia Aviation. In addition to that, Big Camera is 1.11 times more volatile than Asia Aviation Public. It trades about -0.15 of its total potential returns per unit of risk. Asia Aviation Public is currently generating about 0.07 per unit of volatility. If you would invest 262.00 in Asia Aviation Public on September 17, 2024 and sell it today you would earn a total of 20.00 from holding Asia Aviation Public or generate 7.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Big Camera vs. Asia Aviation Public
Performance |
Timeline |
Big Camera |
Asia Aviation Public |
Big Camera and Asia Aviation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Big Camera and Asia Aviation
The main advantage of trading using opposite Big Camera and Asia Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Camera position performs unexpectedly, Asia Aviation 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 Asia Aviation will offset losses from the drop in Asia Aviation's long position.Big Camera vs. Hwa Fong Rubber | Big Camera vs. AAPICO Hitech Public | Big Camera vs. Haad Thip Public | Big Camera vs. Italian Thai Development Public |
Asia Aviation vs. Tata Steel Public | Asia Aviation vs. TTCL Public | Asia Aviation vs. Thaifoods Group Public | Asia Aviation vs. TMT Steel Public |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |