Correlation Between Grand Canal and Amanah Leasing
Can any of the company-specific risk be diversified away by investing in both Grand Canal and Amanah 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 Grand Canal and Amanah Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Canal Land and Amanah Leasing Public, you can compare the effects of market volatilities on Grand Canal and Amanah 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 Grand Canal with a short position of Amanah Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canal and Amanah Leasing.
Diversification Opportunities for Grand Canal and Amanah Leasing
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grand and Amanah is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canal Land and Amanah Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanah Leasing Public and Grand Canal 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 Grand Canal Land are associated (or correlated) with Amanah Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanah Leasing Public has no effect on the direction of Grand Canal i.e., Grand Canal and Amanah Leasing go up and down completely randomly.
Pair Corralation between Grand Canal and Amanah Leasing
Assuming the 90 days trading horizon Grand Canal Land is expected to generate 1.0 times more return on investment than Amanah Leasing. However, Grand Canal is 1.0 times more volatile than Amanah Leasing Public. It trades about 0.14 of its potential returns per unit of risk. Amanah Leasing Public is currently generating about -0.48 per unit of risk. If you would invest 154.00 in Grand Canal Land on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Grand Canal Land or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grand Canal Land vs. Amanah Leasing Public
Performance |
| Timeline |
| Grand Canal Land |
| Amanah Leasing Public |
Grand Canal and Amanah Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Canal and Amanah Leasing
The main advantage of trading using opposite Grand Canal and Amanah Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canal position performs unexpectedly, Amanah 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 Amanah Leasing will offset losses from the drop in Amanah Leasing's long position.| Grand Canal vs. Bangkok Land Public | Grand Canal vs. Country Group Development | Grand Canal vs. Eastern Star Real | Grand Canal vs. Amata Public |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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