Correlation Between Amanah Leasing and Thai Energy
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and Thai Energy 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 Amanah Leasing and Thai Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amanah Leasing Public and Thai Energy Storage, you can compare the effects of market volatilities on Amanah Leasing and Thai Energy 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 Amanah Leasing with a short position of Thai Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Thai Energy.
Diversification Opportunities for Amanah Leasing and Thai Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amanah and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and Thai Energy Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Energy Storage and Amanah 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 Amanah Leasing Public are associated (or correlated) with Thai Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Energy Storage has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and Thai Energy go up and down completely randomly.
Pair Corralation between Amanah Leasing and Thai Energy
Assuming the 90 days trading horizon Amanah Leasing is expected to generate 1.02 times less return on investment than Thai Energy. In addition to that, Amanah Leasing is 1.0 times more volatile than Thai Energy Storage. It trades about 0.08 of its total potential returns per unit of risk. Thai Energy Storage is currently generating about 0.08 per unit of volatility. If you would invest 5,275 in Thai Energy Storage on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Thai Energy Storage or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanah Leasing Public vs. Thai Energy Storage
Performance |
| Timeline |
| Amanah Leasing Public |
| Thai Energy Storage |
Amanah Leasing and Thai Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Thai Energy
The main advantage of trading using opposite Amanah Leasing and Thai Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, Thai Energy 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 Thai Energy will offset losses from the drop in Thai Energy's long position.| Amanah Leasing vs. Karmarts Public | Amanah Leasing vs. Kang Yong Electric | Amanah Leasing vs. SCG PACKAGING PCL NVDR | Amanah Leasing vs. CK Power Public |
| Thai Energy vs. AJ Advance Technology | Thai Energy vs. Asia Metal Public | Thai Energy vs. SCG PACKAGING PCL NVDR | Thai Energy vs. CK Power 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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