Correlation Between Indara Insurance and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Indara Insurance and PINTHONG INDUSTRIAL 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 Indara Insurance and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indara Insurance Public and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Indara Insurance and PINTHONG INDUSTRIAL 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 Indara Insurance with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indara Insurance and PINTHONG INDUSTRIAL.
Diversification Opportunities for Indara Insurance and PINTHONG INDUSTRIAL
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indara and PINTHONG is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Indara Insurance Public and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and Indara Insurance 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 Indara Insurance Public are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Indara Insurance i.e., Indara Insurance and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Indara Insurance and PINTHONG INDUSTRIAL
Assuming the 90 days trading horizon Indara Insurance Public is expected to generate 17.55 times more return on investment than PINTHONG INDUSTRIAL. However, Indara Insurance is 17.55 times more volatile than PINTHONG INDUSTRIAL PARK. It trades about 0.05 of its potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.07 per unit of risk. If you would invest 11,500 in Indara Insurance Public on September 14, 2024 and sell it today you would lose (3,600) from holding Indara Insurance Public or give up 31.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indara Insurance Public vs. PINTHONG INDUSTRIAL PARK
Performance |
| Timeline |
| Indara Insurance Public |
| PINTHONG INDUSTRIAL PARK |
Indara Insurance and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indara Insurance and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Indara Insurance and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indara Insurance position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.| Indara Insurance vs. KGI Securities Public | Indara Insurance vs. Lalin Property Public | Indara Insurance vs. Hwa Fong Rubber | Indara Insurance vs. MCS Steel Public |
| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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