Correlation Between Bangkok Aviation and Precise Public

Can any of the company-specific risk be diversified away by investing in both Bangkok Aviation and Precise Public 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 Bangkok Aviation and Precise Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bangkok Aviation Fuel and Precise Public, you can compare the effects of market volatilities on Bangkok Aviation and Precise Public 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 Bangkok Aviation with a short position of Precise Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Aviation and Precise Public.

Diversification Opportunities for Bangkok Aviation and Precise Public

0.38

Correlation Coefficient

Bangkok Aviation  Precise Public

Weak diversification

The 3 months correlation between Bangkok and Precise is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Aviation Fuel and Precise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precise Public and Bangkok 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 Bangkok Aviation Fuel are associated (or correlated) with Precise Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precise Public has no effect on the direction of Bangkok Aviation i.e., Bangkok Aviation and Precise Public go up and down completely randomly.

Pair Corralation between Bangkok Aviation and Precise Public

Assuming the 90 days trading horizon Bangkok Aviation Fuel is expected to under-perform the Precise Public. In addition to that, Bangkok Aviation is 1.3 times more volatile than Precise Public. It trades about -0.08 of its total potential returns per unit of risk. Precise Public is currently generating about 0.06 per unit of volatility. If you would invest  257.00  in Precise Public on September 11, 2025 and sell it today you would earn a total of  13.00  from holding Precise Public or generate 5.06% return on investment over 90 days.

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

Bangkok Aviation Fuel  vs.  Precise Public

Bangkok Aviation Fuel

Risk-Adjusted Performance

Weakest

Over the last 90 days Bangkok Aviation Fuel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Precise Public

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Precise Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Precise Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bangkok Aviation and Precise Public

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

The idea behind Bangkok Aviation Fuel and Precise 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.