Correlation Between Akkhie Prakarn and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Akkhie Prakarn and Micro 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 Akkhie Prakarn and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akkhie Prakarn Public and Micro Leasing Public, you can compare the effects of market volatilities on Akkhie Prakarn and Micro 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 Akkhie Prakarn with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akkhie Prakarn and Micro Leasing.
Diversification Opportunities for Akkhie Prakarn and Micro Leasing
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akkhie and Micro is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Akkhie Prakarn Public and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing Public and Akkhie Prakarn 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 Akkhie Prakarn Public are associated (or correlated) with Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Akkhie Prakarn i.e., Akkhie Prakarn and Micro Leasing go up and down completely randomly.
Pair Corralation between Akkhie Prakarn and Micro Leasing
Assuming the 90 days trading horizon Akkhie Prakarn Public is expected to generate 15.22 times more return on investment than Micro Leasing. However, Akkhie Prakarn is 15.22 times more volatile than Micro Leasing Public. It trades about 0.06 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.04 per unit of risk. If you would invest 109.00 in Akkhie Prakarn Public on September 2, 2024 and sell it today you would lose (37.00) from holding Akkhie Prakarn Public or give up 33.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akkhie Prakarn Public vs. Micro Leasing Public
Performance |
| Timeline |
| Akkhie Prakarn Public |
| Micro Leasing Public |
Akkhie Prakarn and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akkhie Prakarn and Micro Leasing
The main advantage of trading using opposite Akkhie Prakarn and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akkhie Prakarn position performs unexpectedly, Micro 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 Micro Leasing will offset losses from the drop in Micro Leasing's long position.| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. Cho Thavee Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ARIP Public |
| Micro Leasing vs. East Coast Furnitech | Micro Leasing vs. Filter Vision Public | Micro Leasing vs. Cho Thavee Public | Micro Leasing vs. Akkhie Prakarn 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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