Correlation Between Lalin Property and Navakij Insurance
Can any of the company-specific risk be diversified away by investing in both Lalin Property and Navakij Insurance 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 Navakij Insurance 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 The Navakij Insurance, you can compare the effects of market volatilities on Lalin Property and Navakij Insurance 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 Navakij Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lalin Property and Navakij Insurance.
Diversification Opportunities for Lalin Property and Navakij Insurance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lalin and Navakij is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lalin Property Public and The Navakij Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navakij Insurance 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 Navakij Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navakij Insurance has no effect on the direction of Lalin Property i.e., Lalin Property and Navakij Insurance go up and down completely randomly.
Pair Corralation between Lalin Property and Navakij Insurance
Assuming the 90 days trading horizon Lalin Property Public is expected to under-perform the Navakij Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Lalin Property Public is 102.56 times less risky than Navakij Insurance. The stock trades about -0.01 of its potential returns per unit of risk. The The Navakij Insurance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,550 in The Navakij Insurance on September 14, 2024 and sell it today you would lose (60.00) from holding The Navakij Insurance or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lalin Property Public vs. The Navakij Insurance
Performance |
| Timeline |
| Lalin Property Public |
| Navakij Insurance |
Lalin Property and Navakij Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lalin Property and Navakij Insurance
The main advantage of trading using opposite Lalin Property and Navakij Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lalin Property position performs unexpectedly, Navakij Insurance 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 Navakij Insurance will offset losses from the drop in Navakij Insurance'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 |
| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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