Correlation Between Saksiam Leasing and NSL Foods
Can any of the company-specific risk be diversified away by investing in both Saksiam Leasing and NSL Foods 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 Saksiam Leasing and NSL Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saksiam Leasing Public and NSL Foods Public, you can compare the effects of market volatilities on Saksiam Leasing and NSL Foods 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 Saksiam Leasing with a short position of NSL Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saksiam Leasing and NSL Foods.
Diversification Opportunities for Saksiam Leasing and NSL Foods
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saksiam and NSL is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Saksiam Leasing Public and NSL Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSL Foods Public and Saksiam 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 Saksiam Leasing Public are associated (or correlated) with NSL Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSL Foods Public has no effect on the direction of Saksiam Leasing i.e., Saksiam Leasing and NSL Foods go up and down completely randomly.
Pair Corralation between Saksiam Leasing and NSL Foods
Assuming the 90 days trading horizon Saksiam Leasing Public is expected to under-perform the NSL Foods. In addition to that, Saksiam Leasing is 1.4 times more volatile than NSL Foods Public. It trades about -0.26 of its total potential returns per unit of risk. NSL Foods Public is currently generating about -0.25 per unit of volatility. If you would invest 3,300 in NSL Foods Public on September 15, 2024 and sell it today you would lose (250.00) from holding NSL Foods Public or give up 7.58% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Saksiam Leasing Public vs. NSL Foods Public
Performance |
Timeline |
Saksiam Leasing Public |
NSL Foods Public |
Saksiam Leasing and NSL Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saksiam Leasing and NSL Foods
The main advantage of trading using opposite Saksiam Leasing and NSL Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksiam Leasing position performs unexpectedly, NSL Foods 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 NSL Foods will offset losses from the drop in NSL Foods' long position.Saksiam Leasing vs. Srisawad Power 1979 | Saksiam Leasing vs. Muangthai Capital Public | Saksiam Leasing vs. Micro Leasing Public | Saksiam Leasing vs. Krungthai Card PCL |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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