Correlation Between Amanah Leasing and Globlex Holding
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and Globlex Holding 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 Globlex Holding 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 Globlex Holding Management, you can compare the effects of market volatilities on Amanah Leasing and Globlex Holding 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 Globlex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Globlex Holding.
Diversification Opportunities for Amanah Leasing and Globlex Holding
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amanah and Globlex is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and Globlex Holding Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globlex Holding Mana 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 Globlex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globlex Holding Mana has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and Globlex Holding go up and down completely randomly.
Pair Corralation between Amanah Leasing and Globlex Holding
Assuming the 90 days trading horizon Amanah Leasing Public is expected to under-perform the Globlex Holding. In addition to that, Amanah Leasing is 1.3 times more volatile than Globlex Holding Management. It trades about -0.48 of its total potential returns per unit of risk. Globlex Holding Management is currently generating about -0.13 per unit of volatility. If you would invest 74.00 in Globlex Holding Management on August 29, 2024 and sell it today you would lose (4.00) from holding Globlex Holding Management or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanah Leasing Public vs. Globlex Holding Management
Performance |
| Timeline |
| Amanah Leasing Public |
| Globlex Holding Mana |
Amanah Leasing and Globlex Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Globlex Holding
The main advantage of trading using opposite Amanah Leasing and Globlex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, Globlex Holding 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 Globlex Holding will offset losses from the drop in Globlex Holding's long position.| Amanah Leasing vs. Srisawad Power 1979 | Amanah Leasing vs. JMT Network Services | Amanah Leasing vs. AEON Thana Sinsap | Amanah Leasing vs. Ratchthani Leasing Public |
| Globlex Holding vs. Thai Energy Storage | Globlex Holding vs. Royal Orchid Hotel | Globlex Holding vs. Grand Canal Land | Globlex Holding 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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