Correlation Between Heng Leasing and Namwiwat Medical
Can any of the company-specific risk be diversified away by investing in both Heng Leasing and Namwiwat Medical 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 Heng Leasing and Namwiwat Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heng Leasing Capital and Namwiwat Medical, you can compare the effects of market volatilities on Heng Leasing and Namwiwat Medical 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 Heng Leasing with a short position of Namwiwat Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heng Leasing and Namwiwat Medical.
Diversification Opportunities for Heng Leasing and Namwiwat Medical
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Heng and Namwiwat is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Heng Leasing Capital and Namwiwat Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namwiwat Medical and Heng Leasing 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 Heng Leasing Capital are associated (or correlated) with Namwiwat Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namwiwat Medical has no effect on the direction of Heng Leasing i.e., Heng Leasing and Namwiwat Medical go up and down completely randomly.
Pair Corralation between Heng Leasing and Namwiwat Medical
Assuming the 90 days trading horizon Heng Leasing Capital is expected to under-perform the Namwiwat Medical. In addition to that, Heng Leasing is 2.01 times more volatile than Namwiwat Medical. It trades about -0.41 of its total potential returns per unit of risk. Namwiwat Medical is currently generating about -0.08 per unit of volatility. If you would invest 468.00 in Namwiwat Medical on August 29, 2024 and sell it today you would lose (10.00) from holding Namwiwat Medical or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heng Leasing Capital vs. Namwiwat Medical
Performance |
| Timeline |
| Heng Leasing Capital |
| Namwiwat Medical |
Heng Leasing and Namwiwat Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heng Leasing and Namwiwat Medical
The main advantage of trading using opposite Heng Leasing and Namwiwat Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heng Leasing position performs unexpectedly, Namwiwat Medical 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 Namwiwat Medical will offset losses from the drop in Namwiwat Medical's long position.| Heng Leasing vs. Amanah Leasing Public | Heng Leasing vs. Infraset Public | Heng Leasing vs. JMT Network Services |
| Namwiwat Medical vs. Delta Electronics Public | Namwiwat Medical vs. Delta Electronics Public | Namwiwat Medical vs. Airports of Thailand | Namwiwat Medical vs. Airports of Thailand |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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