Correlation Between Lalin Property and Ratchthani Leasing
Can any of the company-specific risk be diversified away by investing in both Lalin Property and Ratchthani 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 Ratchthani 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 Ratchthani Leasing Public, you can compare the effects of market volatilities on Lalin Property and Ratchthani 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 Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lalin Property and Ratchthani Leasing.
Diversification Opportunities for Lalin Property and Ratchthani Leasing
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lalin and Ratchthani is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lalin Property Public and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani 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 Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of Lalin Property i.e., Lalin Property and Ratchthani Leasing go up and down completely randomly.
Pair Corralation between Lalin Property and Ratchthani Leasing
Assuming the 90 days trading horizon Lalin Property Public is expected to under-perform the Ratchthani Leasing. But the stock apears to be less risky and, when comparing its historical volatility, Lalin Property Public is 1.79 times less risky than Ratchthani Leasing. The stock trades about -0.01 of its potential returns per unit of risk. The Ratchthani Leasing Public is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Ratchthani Leasing Public on January 4, 2025 and sell it today you would earn a total of 12.00 from holding Ratchthani Leasing Public or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lalin Property Public vs. Ratchthani Leasing Public
Performance |
| Timeline |
| Lalin Property Public |
| Ratchthani Leasing Public |
Lalin Property and Ratchthani Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lalin Property and Ratchthani Leasing
The main advantage of trading using opposite Lalin Property and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lalin Property position performs unexpectedly, Ratchthani 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 Ratchthani Leasing will offset losses from the drop in Ratchthani 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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