Correlation Between Lalin Property and Diamond Building
Can any of the company-specific risk be diversified away by investing in both Lalin Property and Diamond Building 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 Lalin Property and Diamond Building into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lalin Property Public and Diamond Building Products, you can compare the effects of market volatilities on Lalin Property and Diamond Building 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 Lalin Property with a short position of Diamond Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lalin Property and Diamond Building.
Diversification Opportunities for Lalin Property and Diamond Building
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lalin and Diamond is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lalin Property Public and Diamond Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Building Products and Lalin Property 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 Lalin Property Public are associated (or correlated) with Diamond Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Building Products has no effect on the direction of Lalin Property i.e., Lalin Property and Diamond Building go up and down completely randomly.
Pair Corralation between Lalin Property and Diamond Building
Assuming the 90 days trading horizon Lalin Property Public is expected to under-perform the Diamond Building. In addition to that, Lalin Property is 1.26 times more volatile than Diamond Building Products. It trades about -0.26 of its total potential returns per unit of risk. Diamond Building Products is currently generating about -0.18 per unit of volatility. If you would invest 790.00 in Diamond Building Products on September 1, 2024 and sell it today you would lose (20.00) from holding Diamond Building Products or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lalin Property Public vs. Diamond Building Products
Performance |
| Timeline |
| Lalin Property Public |
| Diamond Building Products |
Lalin Property and Diamond Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lalin Property and Diamond Building
The main advantage of trading using opposite Lalin Property and Diamond Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lalin Property position performs unexpectedly, Diamond Building 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 Diamond Building will offset losses from the drop in Diamond Building's long position.| Lalin Property vs. AP Public | Lalin Property vs. Land and Houses | Lalin Property vs. LPN Development Public | Lalin Property vs. Supalai Public |
| Diamond Building vs. Haad Thip Public | Diamond Building vs. Lalin Property Public | Diamond Building vs. Dynasty Ceramic Public | Diamond Building vs. AP 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |