Correlation Between Ananda Development and Lalin Property
Can any of the company-specific risk be diversified away by investing in both Ananda Development and Lalin Property 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 Ananda Development and Lalin Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ananda Development Public and Lalin Property Public, you can compare the effects of market volatilities on Ananda Development and Lalin Property 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 Ananda Development with a short position of Lalin Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ananda Development and Lalin Property.
Diversification Opportunities for Ananda Development and Lalin Property
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ananda and Lalin is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ananda Development Public and Lalin Property Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lalin Property Public and Ananda Development 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 Ananda Development Public are associated (or correlated) with Lalin Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lalin Property Public has no effect on the direction of Ananda Development i.e., Ananda Development and Lalin Property go up and down completely randomly.
Pair Corralation between Ananda Development and Lalin Property
Assuming the 90 days trading horizon Ananda Development Public is expected to under-perform the Lalin Property. In addition to that, Ananda Development is 1.73 times more volatile than Lalin Property Public. It trades about -0.2 of its total potential returns per unit of risk. Lalin Property Public is currently generating about -0.2 per unit of volatility. If you would invest 640.00 in Lalin Property Public on August 30, 2024 and sell it today you would lose (25.00) from holding Lalin Property Public or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ananda Development Public vs. Lalin Property Public
Performance |
| Timeline |
| Ananda Development Public |
| Lalin Property Public |
Ananda Development and Lalin Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ananda Development and Lalin Property
The main advantage of trading using opposite Ananda Development and Lalin Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ananda Development position performs unexpectedly, Lalin Property 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 Lalin Property will offset losses from the drop in Lalin Property's long position.| Ananda Development vs. AP Public | Ananda Development vs. Siri Prime Office | Ananda Development vs. Quality Houses Public | Ananda Development vs. LPN Development Public |
| Lalin Property vs. AP Public | Lalin Property vs. Land and Houses | Lalin Property vs. LPN Development Public | Lalin Property vs. Supalai 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |