Correlation Between Arinsiri Land and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Arinsiri Land and PINTHONG INDUSTRIAL 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 Arinsiri Land and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arinsiri Land Public and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Arinsiri Land and PINTHONG INDUSTRIAL 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 Arinsiri Land with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arinsiri Land and PINTHONG INDUSTRIAL.
Diversification Opportunities for Arinsiri Land and PINTHONG INDUSTRIAL
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arinsiri and PINTHONG is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Arinsiri Land Public and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and Arinsiri Land 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 Arinsiri Land Public are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Arinsiri Land i.e., Arinsiri Land and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Arinsiri Land and PINTHONG INDUSTRIAL
Assuming the 90 days trading horizon Arinsiri Land Public is expected to under-perform the PINTHONG INDUSTRIAL. In addition to that, Arinsiri Land is 1.79 times more volatile than PINTHONG INDUSTRIAL PARK. It trades about -0.19 of its total potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.02 per unit of volatility. If you would invest 615.00 in PINTHONG INDUSTRIAL PARK on September 26, 2024 and sell it today you would earn a total of 5.00 from holding PINTHONG INDUSTRIAL PARK or generate 0.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Arinsiri Land Public vs. PINTHONG INDUSTRIAL PARK
Performance |
Timeline |
Arinsiri Land Public |
PINTHONG INDUSTRIAL PARK |
Arinsiri Land and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arinsiri Land and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Arinsiri Land and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arinsiri Land position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.Arinsiri Land vs. Frasers Property Public | Arinsiri Land vs. Singha Estate Public | Arinsiri Land vs. Areeya Property Public | Arinsiri Land vs. Asset Five Group |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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