Correlation Between Lalin Property and Phatra Leasing
Can any of the company-specific risk be diversified away by investing in both Lalin Property and Phatra Leasing 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 Phatra Leasing 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 Phatra Leasing Public, you can compare the effects of market volatilities on Lalin Property and Phatra Leasing 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 Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lalin Property and Phatra Leasing.
Diversification Opportunities for Lalin Property and Phatra Leasing
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lalin and Phatra is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lalin Property Public and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing Public 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 Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of Lalin Property i.e., Lalin Property and Phatra Leasing go up and down completely randomly.
Pair Corralation between Lalin Property and Phatra Leasing
Assuming the 90 days trading horizon Lalin Property Public is expected to under-perform the Phatra Leasing. But the stock apears to be less risky and, when comparing its historical volatility, Lalin Property Public is 63.83 times less risky than Phatra Leasing. The stock trades about -0.06 of its potential returns per unit of risk. The Phatra Leasing Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 226.00 in Phatra Leasing Public on September 12, 2024 and sell it today you would lose (62.00) from holding Phatra Leasing Public or give up 27.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.96% |
| Values | Daily Returns |
Lalin Property Public vs. Phatra Leasing Public
Performance |
| Timeline |
| Lalin Property Public |
| Phatra Leasing Public |
Lalin Property and Phatra Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lalin Property and Phatra Leasing
The main advantage of trading using opposite Lalin Property and Phatra Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lalin Property position performs unexpectedly, Phatra Leasing 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 Phatra Leasing will offset losses from the drop in Phatra Leasing'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 |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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