Correlation Between Ally Leasehold and Ratchthani Leasing
Can any of the company-specific risk be diversified away by investing in both Ally Leasehold 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 Ally Leasehold and Ratchthani Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ally Leasehold Real and Ratchthani Leasing Public, you can compare the effects of market volatilities on Ally Leasehold 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 Ally Leasehold with a short position of Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ally Leasehold and Ratchthani Leasing.
Diversification Opportunities for Ally Leasehold and Ratchthani Leasing
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ally and Ratchthani is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ally Leasehold Real 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 Ally Leasehold 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 Ally Leasehold Real 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 Ally Leasehold i.e., Ally Leasehold and Ratchthani Leasing go up and down completely randomly.
Pair Corralation between Ally Leasehold and Ratchthani Leasing
Assuming the 90 days trading horizon Ally Leasehold Real is expected to under-perform the Ratchthani Leasing. But the stock apears to be less risky and, when comparing its historical volatility, Ally Leasehold Real is 35.67 times less risky than Ratchthani Leasing. The stock trades about -0.01 of its potential returns per unit of risk. The Ratchthani Leasing Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 355.00 in Ratchthani Leasing Public on September 14, 2024 and sell it today you would lose (193.00) from holding Ratchthani Leasing Public or give up 54.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ally Leasehold Real vs. Ratchthani Leasing Public
Performance |
Timeline |
Ally Leasehold Real |
Ratchthani Leasing Public |
Ally Leasehold and Ratchthani Leasing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ally Leasehold and Ratchthani Leasing
The main advantage of trading using opposite Ally Leasehold and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ally Leasehold 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.Ally Leasehold vs. AIM Industrial Growth | Ally Leasehold vs. CPN Retail Growth | Ally Leasehold vs. The Erawan Group | Ally Leasehold vs. Jay Mart Public |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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