Correlation Between Amanah Leasing and Saksiam Leasing
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and Saksiam 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 Saksiam 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 Saksiam Leasing Public, you can compare the effects of market volatilities on Amanah Leasing and Saksiam 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 Saksiam Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Saksiam Leasing.
Diversification Opportunities for Amanah Leasing and Saksiam Leasing
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amanah and Saksiam is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and Saksiam Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saksiam 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 Saksiam Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saksiam Leasing Public has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and Saksiam Leasing go up and down completely randomly.
Pair Corralation between Amanah Leasing and Saksiam Leasing
Assuming the 90 days trading horizon Amanah Leasing Public is expected to generate 17.52 times more return on investment than Saksiam Leasing. However, Amanah Leasing is 17.52 times more volatile than Saksiam Leasing Public. It trades about 0.04 of its potential returns per unit of risk. Saksiam Leasing Public is currently generating about 0.0 per unit of risk. If you would invest 312.00 in Amanah Leasing Public on August 29, 2024 and sell it today you would lose (208.00) from holding Amanah Leasing Public or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Amanah Leasing Public vs. Saksiam Leasing Public
Performance |
| Timeline |
| Amanah Leasing Public |
| Saksiam Leasing Public |
Amanah Leasing and Saksiam Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Saksiam Leasing
The main advantage of trading using opposite Amanah Leasing and Saksiam Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, Saksiam 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 Saksiam Leasing will offset losses from the drop in Saksiam Leasing's long position.| Amanah Leasing vs. Karmarts Public | Amanah Leasing vs. Kang Yong Electric | Amanah Leasing vs. Kiatnakin Phatra Bank | Amanah Leasing vs. SCG PACKAGING PCL NVDR |
| Saksiam Leasing vs. Amanah Leasing Public | Saksiam Leasing vs. Muangthai Capital Public | Saksiam Leasing vs. Infraset Public | Saksiam 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |