Correlation Between Bualuang Office and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Bualuang Office and Micro 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 Bualuang Office and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bualuang Office Leasehold and Micro Leasing Public, you can compare the effects of market volatilities on Bualuang Office and Micro 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 Bualuang Office with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bualuang Office and Micro Leasing.
Diversification Opportunities for Bualuang Office and Micro Leasing
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bualuang and Micro is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bualuang Office Leasehold and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing Public and Bualuang Office 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 Bualuang Office Leasehold are associated (or correlated) with Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Bualuang Office i.e., Bualuang Office and Micro Leasing go up and down completely randomly.
Pair Corralation between Bualuang Office and Micro Leasing
Assuming the 90 days trading horizon Bualuang Office Leasehold is expected to under-perform the Micro Leasing. In addition to that, Bualuang Office is 6.64 times more volatile than Micro Leasing Public. It trades about -0.22 of its total potential returns per unit of risk. Micro Leasing Public is currently generating about -0.47 per unit of volatility. If you would invest 151.00 in Micro Leasing Public on August 30, 2024 and sell it today you would lose (44.00) from holding Micro Leasing Public or give up 29.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bualuang Office Leasehold vs. Micro Leasing Public
Performance |
| Timeline |
| Bualuang Office Leasehold |
| Micro Leasing Public |
Bualuang Office and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bualuang Office and Micro Leasing
The main advantage of trading using opposite Bualuang Office and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bualuang Office position performs unexpectedly, Micro 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 Micro Leasing will offset losses from the drop in Micro Leasing's long position.| Bualuang Office vs. Quality Houses Hotel | Bualuang Office vs. Quality Houses Property | Bualuang Office vs. CK Power Public | Bualuang Office vs. Thai Metal Drum |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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