Correlation Between Ratchthani Leasing and Sahamitr Pressure
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and Sahamitr Pressure 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 Sahamitr Pressure 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 Sahamitr Pressure Container, you can compare the effects of market volatilities on Ratchthani Leasing and Sahamitr Pressure 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 Sahamitr Pressure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and Sahamitr Pressure.
Diversification Opportunities for Ratchthani Leasing and Sahamitr Pressure
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ratchthani and Sahamitr is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and Sahamitr Pressure Container in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sahamitr Pressure 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 Sahamitr Pressure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sahamitr Pressure has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and Sahamitr Pressure go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and Sahamitr Pressure
Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to under-perform the Sahamitr Pressure. In addition to that, Ratchthani Leasing is 2.74 times more volatile than Sahamitr Pressure Container. It trades about -0.2 of its total potential returns per unit of risk. Sahamitr Pressure Container is currently generating about -0.13 per unit of volatility. If you would invest 980.00 in Sahamitr Pressure Container on September 15, 2024 and sell it today you would lose (60.00) from holding Sahamitr Pressure Container or give up 6.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ratchthani Leasing Public vs. Sahamitr Pressure Container
Performance |
Timeline |
Ratchthani Leasing Public |
Sahamitr Pressure |
Ratchthani Leasing and Sahamitr Pressure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ratchthani Leasing and Sahamitr Pressure
The main advantage of trading using opposite Ratchthani Leasing and Sahamitr Pressure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, Sahamitr Pressure 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 Sahamitr Pressure will offset losses from the drop in Sahamitr Pressure's long position.Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
Sahamitr Pressure vs. Thantawan Industry Public | Sahamitr Pressure vs. The Erawan Group | Sahamitr Pressure vs. Jay Mart Public | Sahamitr Pressure vs. Airports of Thailand |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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