Correlation Between Ally Leasehold and Phatra Leasing
Can any of the company-specific risk be diversified away by investing in both Ally Leasehold and Phatra 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 Ally Leasehold and Phatra Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ally Leasehold Real and Phatra Leasing Public, you can compare the effects of market volatilities on Ally Leasehold and Phatra 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 Ally Leasehold with a short position of Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ally Leasehold and Phatra Leasing.
Diversification Opportunities for Ally Leasehold and Phatra Leasing
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ally and Phatra is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ally Leasehold Real and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing Public and Ally Leasehold 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 Ally Leasehold Real are associated (or correlated) with Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of Ally Leasehold i.e., Ally Leasehold and Phatra Leasing go up and down completely randomly.
Pair Corralation between Ally Leasehold and Phatra Leasing
Assuming the 90 days trading horizon Ally Leasehold Real is expected to generate 0.87 times more return on investment than Phatra Leasing. However, Ally Leasehold Real is 1.15 times less risky than Phatra Leasing. It trades about 0.08 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about -0.27 per unit of risk. If you would invest 525.00 in Ally Leasehold Real on October 7, 2024 and sell it today you would earn a total of 10.00 from holding Ally Leasehold Real or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ally Leasehold Real vs. Phatra Leasing Public
Performance |
| Timeline |
| Ally Leasehold Real |
| Phatra Leasing Public |
Ally Leasehold and Phatra Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ally Leasehold and Phatra Leasing
The main advantage of trading using opposite Ally Leasehold and Phatra Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ally Leasehold position performs unexpectedly, Phatra 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 Phatra Leasing will offset losses from the drop in Phatra Leasing's long position.| Ally Leasehold vs. AIM Industrial Growth | Ally Leasehold vs. Dusit Thani Freehold | Ally Leasehold vs. CPN Retail Growth | Ally Leasehold vs. Amata Summit Growth |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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