Correlation Between Global Real and Samui Airport

Can any of the company-specific risk be diversified away by investing in both Global Real and Samui 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 Global Real and Samui Airport into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Real Estate and Samui Airport Property, you can compare the effects of market volatilities on Global Real and Samui 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 Global Real with a short position of Samui Airport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Real and Samui Airport.

Diversification Opportunities for Global Real and Samui Airport

0.0

Correlation Coefficient

Global Real  Samui Airport

Pay attention - limited upside

The 3 months correlation between Global and Samui is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Real Estate and Samui Airport Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samui Airport Property and Global Real 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 Global Real Estate are associated (or correlated) with Samui Airport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samui Airport Property has no effect on the direction of Global Real i.e., Global Real and Samui Airport go up and down completely randomly.

Pair Corralation between Global Real and Samui Airport

If you would invest  385.00  in Global Real Estate on August 31, 2024 and sell it today you would earn a total of  72.00  from holding Global Real Estate or generate 18.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Global Real Estate  vs.  Samui Airport Property

Global Real Estate

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Real Estate are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Global Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Samui Airport Property

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samui Airport Property has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Samui Airport is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Global Real and Samui Airport

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

The idea behind Global Real Estate and Samui Airport Property 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.