Correlation Between Phatra Leasing and BA Airport

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

By analyzing existing cross correlation between Phatra Leasing Public and BA Airport Leasehold, you can compare the effects of market volatilities on Phatra Leasing and BA 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 Phatra Leasing with a short position of BA Airport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and BA Airport.

Diversification Opportunities for Phatra Leasing and BA Airport

0.22

Correlation Coefficient

Phatra Leasing  BA Airport

Modest diversification

The 3 months correlation between Phatra and BAREIT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and BA Airport Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BA Airport Leasehold and Phatra Leasing 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 Phatra Leasing Public are associated (or correlated) with BA Airport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BA Airport Leasehold has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and BA Airport go up and down completely randomly.

Pair Corralation between Phatra Leasing and BA Airport

Assuming the 90 days horizon Phatra Leasing Public is expected to generate 4.72 times more return on investment than BA Airport. However, Phatra Leasing is 4.72 times more volatile than BA Airport Leasehold. It trades about 0.09 of its potential returns per unit of risk. BA Airport Leasehold is currently generating about 0.08 per unit of risk. If you would invest  105.00  in Phatra Leasing Public on April 23, 2025 and sell it today you would earn a total of  18.00  from holding Phatra Leasing Public or generate 17.14% return on investment over 90 days.

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

Phatra Leasing Public  vs.  BA Airport Leasehold

Phatra Leasing Public

Risk-Adjusted Performance

OK

Over the last 90 days Phatra Leasing Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite weak fundamental drivers, Phatra Leasing disclosed solid returns over the last few months and may actually be approaching a breakup point.

BA Airport Leasehold

Risk-Adjusted Performance

Modest

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

Pair Trading with Phatra Leasing and BA Airport

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

The idea behind Phatra Leasing Public and BA Airport Leasehold 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.