Correlation Between AEON Thana and Ngern Tid

Can any of the company-specific risk be diversified away by investing in both AEON Thana and Ngern Tid 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 AEON Thana and Ngern Tid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AEON Thana Sinsap and Ngern Tid Lor, you can compare the effects of market volatilities on AEON Thana and Ngern Tid 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 AEON Thana with a short position of Ngern Tid. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON Thana and Ngern Tid.

Diversification Opportunities for AEON Thana and Ngern Tid

-0.33

Correlation Coefficient

AEON Thana  Ngern Tid

Very good diversification

The 3 months correlation between AEON and Ngern is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AEON Thana Sinsap and Ngern Tid Lor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngern Tid Lor and AEON Thana 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 AEON Thana Sinsap are associated (or correlated) with Ngern Tid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngern Tid Lor has no effect on the direction of AEON Thana i.e., AEON Thana and Ngern Tid go up and down completely randomly.

Pair Corralation between AEON Thana and Ngern Tid

Assuming the 90 days trading horizon AEON Thana Sinsap is expected to under-perform the Ngern Tid. But the stock apears to be less risky and, when comparing its historical volatility, AEON Thana Sinsap is 4.82 times less risky than Ngern Tid. The stock trades about -0.04 of its potential returns per unit of risk. The Ngern Tid Lor is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,470  in Ngern Tid Lor on April 20, 2025 and sell it today you would earn a total of  270.00  from holding Ngern Tid Lor or generate 18.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AEON Thana Sinsap  vs.  Ngern Tid Lor

AEON Thana Sinsap

Risk-Adjusted Performance

Very Weak

Over the last 90 days AEON Thana Sinsap has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AEON Thana is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Ngern Tid Lor

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ngern Tid Lor are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, Ngern Tid sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AEON Thana and Ngern Tid

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

The idea behind AEON Thana Sinsap and Ngern Tid Lor 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.