Correlation Between Cho Thavee and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Cho Thavee 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 Cho Thavee and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cho Thavee Public and Micro Leasing Public, you can compare the effects of market volatilities on Cho Thavee 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 Cho Thavee with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cho Thavee and Micro Leasing.
Diversification Opportunities for Cho Thavee and Micro Leasing
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cho and Micro is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cho Thavee Public 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 Cho Thavee 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 Cho Thavee Public 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 Cho Thavee i.e., Cho Thavee and Micro Leasing go up and down completely randomly.
Pair Corralation between Cho Thavee and Micro Leasing
Assuming the 90 days trading horizon Cho Thavee Public is expected to generate 4.9 times more return on investment than Micro Leasing. However, Cho Thavee is 4.9 times more volatile than Micro Leasing Public. It trades about 0.17 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.18 per unit of risk. If you would invest 3.00 in Cho Thavee Public on November 29, 2024 and sell it today you would earn a total of 1.00 from holding Cho Thavee Public or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cho Thavee Public vs. Micro Leasing Public
Performance |
| Timeline |
| Cho Thavee Public |
| Micro Leasing Public |
Cho Thavee and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cho Thavee and Micro Leasing
The main advantage of trading using opposite Cho Thavee and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cho Thavee 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.| Cho Thavee vs. Chewathai Public | Cho Thavee vs. Filter Vision Public | Cho Thavee vs. G Capital Public | Cho Thavee vs. Demco Public |
| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Muangthai Capital Public | Micro Leasing vs. Infraset Public | Micro 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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