Correlation Between LH Financial and Panjawattana Plastic
Can any of the company-specific risk be diversified away by investing in both LH Financial and Panjawattana Plastic 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 LH Financial and Panjawattana Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LH Financial Group and Panjawattana Plastic Public, you can compare the effects of market volatilities on LH Financial and Panjawattana Plastic 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 LH Financial with a short position of Panjawattana Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Financial and Panjawattana Plastic.
Diversification Opportunities for LH Financial and Panjawattana Plastic
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LHFG and Panjawattana is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding LH Financial Group and Panjawattana Plastic Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panjawattana Plastic and LH Financial 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 LH Financial Group are associated (or correlated) with Panjawattana Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panjawattana Plastic has no effect on the direction of LH Financial i.e., LH Financial and Panjawattana Plastic go up and down completely randomly.
Pair Corralation between LH Financial and Panjawattana Plastic
Assuming the 90 days trading horizon LH Financial Group is expected to generate 0.81 times more return on investment than Panjawattana Plastic. However, LH Financial Group is 1.23 times less risky than Panjawattana Plastic. It trades about -0.08 of its potential returns per unit of risk. Panjawattana Plastic Public is currently generating about -0.14 per unit of risk. If you would invest 80.00 in LH Financial Group on November 14, 2024 and sell it today you would lose (5.00) from holding LH Financial Group or give up 6.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
LH Financial Group vs. Panjawattana Plastic Public
Performance |
Timeline |
LH Financial Group |
Panjawattana Plastic |
LH Financial and Panjawattana Plastic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LH Financial and Panjawattana Plastic
The main advantage of trading using opposite LH Financial and Panjawattana Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Financial position performs unexpectedly, Panjawattana Plastic 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 Panjawattana Plastic will offset losses from the drop in Panjawattana Plastic's long position.LH Financial vs. Quality Houses Public | ||
LH Financial vs. Kiatnakin Phatra Bank | ||
LH Financial vs. Land and Houses | ||
LH Financial vs. TISCO Financial Group |
Panjawattana Plastic vs. Kingsmen CMTI Public | ||
Panjawattana Plastic vs. Project Planning Service | ||
Panjawattana Plastic vs. Power Solution Technologies | ||
Panjawattana Plastic vs. Hydrotek 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |