Correlation Between Ratchthani Leasing and City Sports

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

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

Diversification Opportunities for Ratchthani Leasing and City Sports

-0.73

Correlation Coefficient

Ratchthani Leasing  City Sports

Pay attention - limited upside

The 3 months correlation between Ratchthani and City is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and City Sports and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Sports and Ratchthani 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 Ratchthani Leasing Public are associated (or correlated) with City Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Sports has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and City Sports go up and down completely randomly.

Pair Corralation between Ratchthani Leasing and City Sports

Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to under-perform the City Sports. In addition to that, Ratchthani Leasing is 3.84 times more volatile than City Sports and. It trades about -0.2 of its total potential returns per unit of risk. City Sports and is currently generating about 0.4 per unit of volatility. If you would invest  7,550  in City Sports and on September 16, 2024 and sell it today you would earn a total of  1,100  from holding City Sports and or generate 14.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Ratchthani Leasing Public  vs.  City Sports and

Ratchthani Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

City Sports

Risk-Adjusted Performance

31 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in City Sports and are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, City Sports disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ratchthani Leasing and City Sports

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

The idea behind Ratchthani Leasing Public and City Sports and 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.