Correlation Between Amanah Leasing and Mida Leasing
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and Mida 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 Amanah Leasing and Mida Leasing 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 Mida Leasing Public, you can compare the effects of market volatilities on Amanah Leasing and Mida 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 Amanah Leasing with a short position of Mida Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Mida Leasing.
Diversification Opportunities for Amanah Leasing and Mida Leasing
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amanah and Mida is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and Mida Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mida Leasing Public 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 Mida Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mida Leasing Public has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and Mida Leasing go up and down completely randomly.
Pair Corralation between Amanah Leasing and Mida Leasing
Assuming the 90 days trading horizon Amanah Leasing is expected to generate 1.05 times less return on investment than Mida Leasing. But when comparing it to its historical volatility, Amanah Leasing Public is 1.0 times less risky than Mida Leasing. It trades about 0.11 of its potential returns per unit of risk. Mida Leasing Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Mida Leasing Public on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Mida Leasing Public or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanah Leasing Public vs. Mida Leasing Public
Performance |
| Timeline |
| Amanah Leasing Public |
| Mida Leasing Public |
Amanah Leasing and Mida Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Mida Leasing
The main advantage of trading using opposite Amanah Leasing and Mida Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, Mida 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 Mida Leasing will offset losses from the drop in Mida Leasing'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 |
| Mida Leasing vs. KGI Securities Public | Mida Leasing vs. Krungthai Car Rent | Mida Leasing vs. Eastern Commercial Leasing | Mida Leasing vs. JMT Network Services |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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