Correlation Between PINTHONG INDUSTRIAL and Arinsiri Land
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL and Arinsiri Land 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 PINTHONG INDUSTRIAL and Arinsiri Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PINTHONG INDUSTRIAL PARK and Arinsiri Land Public, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL and Arinsiri Land 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 PINTHONG INDUSTRIAL with a short position of Arinsiri Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and Arinsiri Land.
Diversification Opportunities for PINTHONG INDUSTRIAL and Arinsiri Land
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PINTHONG and Arinsiri is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK and Arinsiri Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arinsiri Land Public and PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL PARK are associated (or correlated) with Arinsiri Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arinsiri Land Public has no effect on the direction of PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and Arinsiri Land go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and Arinsiri Land
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL is expected to generate 11.86 times less return on investment than Arinsiri Land. But when comparing it to its historical volatility, PINTHONG INDUSTRIAL PARK is 17.16 times less risky than Arinsiri Land. It trades about 0.06 of its potential returns per unit of risk. Arinsiri Land Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Arinsiri Land Public on September 26, 2024 and sell it today you would lose (333.00) from holding Arinsiri Land Public or give up 83.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. Arinsiri Land Public
Performance |
Timeline |
PINTHONG INDUSTRIAL PARK |
Arinsiri Land Public |
PINTHONG INDUSTRIAL and Arinsiri Land Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PINTHONG INDUSTRIAL and Arinsiri Land
The main advantage of trading using opposite PINTHONG INDUSTRIAL and Arinsiri Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL position performs unexpectedly, Arinsiri Land 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 Arinsiri Land will offset losses from the drop in Arinsiri Land's long position.PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset Public |
Arinsiri Land vs. Frasers Property Public | Arinsiri Land vs. Singha Estate Public | Arinsiri Land vs. Areeya Property Public | Arinsiri Land vs. Asset Five Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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