Correlation Between Thai Energy and Amanah Leasing
Can any of the company-specific risk be diversified away by investing in both Thai Energy and Amanah Leasing 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 Thai Energy and Amanah Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Energy Storage and Amanah Leasing Public, you can compare the effects of market volatilities on Thai Energy and Amanah Leasing 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 Thai Energy with a short position of Amanah Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Energy and Amanah Leasing.
Diversification Opportunities for Thai Energy and Amanah Leasing
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thai and Amanah is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Thai Energy Storage and Amanah Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanah Leasing Public and Thai Energy 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 Thai Energy Storage are associated (or correlated) with Amanah Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanah Leasing Public has no effect on the direction of Thai Energy i.e., Thai Energy and Amanah Leasing go up and down completely randomly.
Pair Corralation between Thai Energy and Amanah Leasing
Assuming the 90 days trading horizon Thai Energy Storage is expected to generate 0.14 times more return on investment than Amanah Leasing. However, Thai Energy Storage is 7.07 times less risky than Amanah Leasing. It trades about 0.07 of its potential returns per unit of risk. Amanah Leasing Public is currently generating about -0.43 per unit of risk. If you would invest 5,350 in Thai Energy Storage on August 25, 2024 and sell it today you would earn a total of 25.00 from holding Thai Energy Storage or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Thai Energy Storage vs. Amanah Leasing Public
Performance |
| Timeline |
| Thai Energy Storage |
| Amanah Leasing Public |
Thai Energy and Amanah Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Energy and Amanah Leasing
The main advantage of trading using opposite Thai Energy and Amanah Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Energy position performs unexpectedly, Amanah Leasing 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 Amanah Leasing will offset losses from the drop in Amanah Leasing's long position.| Thai Energy vs. AJ Advance Technology | Thai Energy vs. Asia Precision Public | Thai Energy vs. Asia Metal Public | Thai Energy vs. The Erawan Group |
| Amanah Leasing vs. Thai Energy Storage | Amanah Leasing vs. Royal Orchid Hotel | Amanah Leasing vs. Grand Canal Land | Amanah Leasing vs. PRG Public |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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