Correlation Between Micro Leasing and Srisawad Public

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

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

Diversification Opportunities for Micro Leasing and Srisawad Public

-0.11

Correlation Coefficient

Micro Leasing  Srisawad Public

Good diversification

The 3 months correlation between Micro and Srisawad is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Micro Leasing Public and Srisawad Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Public and Micro 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 Micro Leasing Public are associated (or correlated) with Srisawad Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Public has no effect on the direction of Micro Leasing i.e., Micro Leasing and Srisawad Public go up and down completely randomly.

Pair Corralation between Micro Leasing and Srisawad Public

Assuming the 90 days trading horizon Micro Leasing Public is expected to under-perform the Srisawad Public. But the stock apears to be less risky and, when comparing its historical volatility, Micro Leasing Public is 34.72 times less risky than Srisawad Public. The stock trades about -0.17 of its potential returns per unit of risk. The Srisawad Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  4,378  in Srisawad Public on September 13, 2024 and sell it today you would lose (453.00) from holding Srisawad Public or give up 10.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Micro Leasing Public  vs.  Srisawad Public

Micro Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Micro Leasing Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.

Srisawad Public

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Srisawad Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Srisawad Public reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Micro Leasing and Srisawad Public

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

The idea behind Micro Leasing Public and Srisawad 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.