Correlation Between Saker Aviation and Airports
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Airports 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 Saker Aviation and Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saker Aviation Services and Airports of Thailand, you can compare the effects of market volatilities on Saker Aviation and Airports 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 Saker Aviation with a short position of Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Airports.
Diversification Opportunities for Saker Aviation and Airports
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saker and Airports is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Airports of Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airports of Thailand and Saker Aviation 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 Saker Aviation Services are associated (or correlated) with Airports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airports of Thailand has no effect on the direction of Saker Aviation i.e., Saker Aviation and Airports go up and down completely randomly.
Pair Corralation between Saker Aviation and Airports
Given the investment horizon of 90 days Saker Aviation Services is expected to generate 1.05 times more return on investment than Airports. However, Saker Aviation is 1.05 times more volatile than Airports of Thailand. It trades about 0.06 of its potential returns per unit of risk. Airports of Thailand is currently generating about 0.01 per unit of risk. If you would invest 440.00 in Saker Aviation Services on January 25, 2024 and sell it today you would earn a total of 423.00 from holding Saker Aviation Services or generate 96.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saker Aviation Services vs. Airports of Thailand
Performance |
| Timeline |
| Saker Aviation Services |
| Airports of Thailand |
Saker Aviation and Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Airports
The main advantage of trading using opposite Saker Aviation and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Airports 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 Airports will offset losses from the drop in Airports' long position.| Saker Aviation vs. Vertical Aerospace | Saker Aviation vs. Rolls Royce Holdings plc | Saker Aviation vs. Embraer SA ADR | Saker Aviation vs. Rocket Lab USA |
| Airports vs. Aeroports de Paris | Airports vs. Corporacion America Airports | Airports vs. Aeroports de Paris | Airports vs. Saker Aviation Services |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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