Correlation Between 3BB INTERNET and Ratchthani Leasing

Can any of the company-specific risk be diversified away by investing in both 3BB INTERNET and Ratchthani Leasing 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 3BB INTERNET and Ratchthani Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 3BB INTERNET INFRASTRUCTURE and Ratchthani Leasing Public, you can compare the effects of market volatilities on 3BB INTERNET and Ratchthani Leasing 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 3BB INTERNET with a short position of Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3BB INTERNET and Ratchthani Leasing.

Diversification Opportunities for 3BB INTERNET and Ratchthani Leasing

0.71

Correlation Coefficient

3BB INTERNET  Ratchthani Leasing

Poor diversification

The 3 months correlation between 3BB and Ratchthani is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding 3BB INTERNET INFRASTRUCTURE and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani Leasing Public and 3BB INTERNET 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 3BB INTERNET INFRASTRUCTURE are associated (or correlated) with Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of 3BB INTERNET i.e., 3BB INTERNET and Ratchthani Leasing go up and down completely randomly.

Pair Corralation between 3BB INTERNET and Ratchthani Leasing

Assuming the 90 days trading horizon 3BB INTERNET INFRASTRUCTURE is expected to generate 0.53 times more return on investment than Ratchthani Leasing. However, 3BB INTERNET INFRASTRUCTURE is 1.89 times less risky than Ratchthani Leasing. It trades about -0.1 of its potential returns per unit of risk. Ratchthani Leasing Public is currently generating about -0.2 per unit of risk. If you would invest  609.00  in 3BB INTERNET INFRASTRUCTURE on September 14, 2024 and sell it today you would lose (44.00) from holding 3BB INTERNET INFRASTRUCTURE or give up 7.22% of portfolio value over 90 days.

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

3BB INTERNET INFRASTRUCTURE  vs.  Ratchthani Leasing Public

3BB INTERNET INFRAST

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 3BB INTERNET INFRASTRUCTURE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Ratchthani Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ratchthani Leasing Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with 3BB INTERNET and Ratchthani Leasing

The main advantage of trading using opposite 3BB INTERNET and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3BB INTERNET position performs unexpectedly, Ratchthani Leasing 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 Ratchthani Leasing will offset losses from the drop in Ratchthani Leasing's long position.

The idea behind 3BB INTERNET INFRASTRUCTURE and Ratchthani Leasing 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .