Correlation Between Interlink Communication and Praram 9
Can any of the company-specific risk be diversified away by investing in both Interlink Communication and Praram 9 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 Interlink Communication and Praram 9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlink Communication Public and Praram 9 Hospital, you can compare the effects of market volatilities on Interlink Communication and Praram 9 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 Interlink Communication with a short position of Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlink Communication and Praram 9.
Diversification Opportunities for Interlink Communication and Praram 9
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Interlink and Praram is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Communication Public and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital and Interlink Communication 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 Interlink Communication Public are associated (or correlated) with Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Interlink Communication i.e., Interlink Communication and Praram 9 go up and down completely randomly.
Pair Corralation between Interlink Communication and Praram 9
Assuming the 90 days trading horizon Interlink Communication is expected to generate 192.0 times less return on investment than Praram 9. But when comparing it to its historical volatility, Interlink Communication Public is 1.08 times less risky than Praram 9. It trades about 0.0 of its potential returns per unit of risk. Praram 9 Hospital is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,619 in Praram 9 Hospital on September 2, 2024 and sell it today you would earn a total of 956.00 from holding Praram 9 Hospital or generate 59.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlink Communication Public vs. Praram 9 Hospital
Performance |
| Timeline |
| Interlink Communication |
| Praram 9 Hospital |
Interlink Communication and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlink Communication and Praram 9
The main advantage of trading using opposite Interlink Communication and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Communication position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's long position.| Interlink Communication vs. AP Public | Interlink Communication vs. Jasmine International Public | Interlink Communication vs. Asia Plus Group | Interlink Communication vs. Bangchak Public |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital Public | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |