Correlation Between CENTRAL RETAIL and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both CENTRAL RETAIL 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 CENTRAL RETAIL and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTRAL RETAIL P and Micro Leasing Public, you can compare the effects of market volatilities on CENTRAL RETAIL 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 CENTRAL RETAIL with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTRAL RETAIL and Micro Leasing.
Diversification Opportunities for CENTRAL RETAIL and Micro Leasing
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CENTRAL and Micro is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CENTRAL RETAIL P 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 CENTRAL RETAIL 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 CENTRAL RETAIL P 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 CENTRAL RETAIL i.e., CENTRAL RETAIL and Micro Leasing go up and down completely randomly.
Pair Corralation between CENTRAL RETAIL and Micro Leasing
Assuming the 90 days trading horizon CENTRAL RETAIL P is expected to generate 0.24 times more return on investment than Micro Leasing. However, CENTRAL RETAIL P is 4.15 times less risky than Micro Leasing. It trades about -0.06 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.07 per unit of risk. If you would invest 4,265 in CENTRAL RETAIL P on September 1, 2024 and sell it today you would lose (915.00) from holding CENTRAL RETAIL P or give up 21.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTRAL RETAIL P vs. Micro Leasing Public
Performance |
| Timeline |
| CENTRAL RETAIL P |
| Micro Leasing Public |
CENTRAL RETAIL and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTRAL RETAIL and Micro Leasing
The main advantage of trading using opposite CENTRAL RETAIL and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTRAL RETAIL 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.| CENTRAL RETAIL vs. Somboon Advance Technology | CENTRAL RETAIL vs. Thai Coating Industrial | CENTRAL RETAIL vs. PINTHONG INDUSTRIAL PARK | CENTRAL RETAIL vs. AIM Industrial Growth |
| Micro Leasing vs. East Coast Furnitech | Micro Leasing vs. Filter Vision Public | Micro Leasing vs. Cho Thavee Public | Micro Leasing vs. Akkhie Prakarn 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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