Correlation Between Ngern Tid and Project Planning

Can any of the company-specific risk be diversified away by investing in both Ngern Tid and Project Planning 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 Ngern Tid and Project Planning into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ngern Tid Lor and Project Planning Service, you can compare the effects of market volatilities on Ngern Tid and Project Planning 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 Ngern Tid with a short position of Project Planning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ngern Tid and Project Planning.

Diversification Opportunities for Ngern Tid and Project Planning

0.73

Correlation Coefficient

Ngern Tid  Project Planning

Poor diversification

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

Pair Corralation between Ngern Tid and Project Planning

Assuming the 90 days trading horizon Ngern Tid Lor is expected to generate 0.65 times more return on investment than Project Planning. However, Ngern Tid Lor is 1.54 times less risky than Project Planning. It trades about -0.11 of its potential returns per unit of risk. Project Planning Service is currently generating about -0.21 per unit of risk. If you would invest  1,850  in Ngern Tid Lor on September 23, 2024 and sell it today you would lose (320.00) from holding Ngern Tid Lor or give up 17.3% of portfolio value over 90 days.

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

Ngern Tid Lor  vs.  Project Planning Service

Ngern Tid Lor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ngern Tid Lor 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 indicators 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.

Project Planning Service

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Project Planning Service 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 basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Ngern Tid and Project Planning

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

The idea behind Ngern Tid Lor and Project Planning Service 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.