Correlation Between Heng Leasing and THONBURI HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Heng Leasing and THONBURI HEALTHCARE 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 THONBURI HEALTHCARE 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 THONBURI HEALTHCARE GRO NVDR, you can compare the effects of market volatilities on Heng Leasing and THONBURI HEALTHCARE 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 THONBURI HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heng Leasing and THONBURI HEALTHCARE.
Diversification Opportunities for Heng Leasing and THONBURI HEALTHCARE
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heng and THONBURI is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Heng Leasing Capital and THONBURI HEALTHCARE GRO NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THONBURI HEALTHCARE GRO 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 THONBURI HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THONBURI HEALTHCARE GRO has no effect on the direction of Heng Leasing i.e., Heng Leasing and THONBURI HEALTHCARE go up and down completely randomly.
Pair Corralation between Heng Leasing and THONBURI HEALTHCARE
Assuming the 90 days trading horizon Heng Leasing Capital is expected to generate 0.11 times more return on investment than THONBURI HEALTHCARE. However, Heng Leasing Capital is 8.79 times less risky than THONBURI HEALTHCARE. It trades about -0.17 of its potential returns per unit of risk. THONBURI HEALTHCARE GRO NVDR is currently generating about -0.15 per unit of risk. If you would invest 128.00 in Heng Leasing Capital on September 14, 2024 and sell it today you would lose (9.00) from holding Heng Leasing Capital or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heng Leasing Capital vs. THONBURI HEALTHCARE GRO NVDR
Performance |
| Timeline |
| Heng Leasing Capital |
| THONBURI HEALTHCARE GRO |
Heng Leasing and THONBURI HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heng Leasing and THONBURI HEALTHCARE
The main advantage of trading using opposite Heng Leasing and THONBURI HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heng Leasing position performs unexpectedly, THONBURI HEALTHCARE 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 THONBURI HEALTHCARE will offset losses from the drop in THONBURI HEALTHCARE's long position.| Heng Leasing vs. Srisawad Power 1979 | Heng Leasing vs. Muangthai Capital Public | Heng Leasing vs. Micro Leasing Public | Heng Leasing vs. Krungthai Card PCL |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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