Correlation Between Amanah Leasing and Thaire Life
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and Thaire Life 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 Thaire Life 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 Thaire Life Assurance, you can compare the effects of market volatilities on Amanah Leasing and Thaire Life 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 Thaire Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Thaire Life.
Diversification Opportunities for Amanah Leasing and Thaire Life
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amanah and Thaire is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and Thaire Life Assurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaire Life Assurance 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 Thaire Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaire Life Assurance has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and Thaire Life go up and down completely randomly.
Pair Corralation between Amanah Leasing and Thaire Life
Assuming the 90 days trading horizon Amanah Leasing is expected to generate 1.01 times less return on investment than Thaire Life. In addition to that, Amanah Leasing is 1.0 times more volatile than Thaire Life Assurance. It trades about 0.08 of its total potential returns per unit of risk. Thaire Life Assurance is currently generating about 0.08 per unit of volatility. If you would invest 174.00 in Thaire Life Assurance on August 31, 2024 and sell it today you would lose (7.00) from holding Thaire Life Assurance or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanah Leasing Public vs. Thaire Life Assurance
Performance |
| Timeline |
| Amanah Leasing Public |
| Thaire Life Assurance |
Amanah Leasing and Thaire Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Thaire Life
The main advantage of trading using opposite Amanah Leasing and Thaire Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, Thaire Life 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 Thaire Life will offset losses from the drop in Thaire Life'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 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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