Correlation Between Ladprao General and Central Retail
Can any of the company-specific risk be diversified away by investing in both Ladprao General and Central Retail 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 Ladprao General and Central Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ladprao General Hospital and Central Retail, you can compare the effects of market volatilities on Ladprao General and Central Retail 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 Ladprao General with a short position of Central Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ladprao General and Central Retail.
Diversification Opportunities for Ladprao General and Central Retail
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ladprao and Central is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ladprao General Hospital and Central Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Retail and Ladprao General 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 Ladprao General Hospital are associated (or correlated) with Central Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Retail has no effect on the direction of Ladprao General i.e., Ladprao General and Central Retail go up and down completely randomly.
Pair Corralation between Ladprao General and Central Retail
Assuming the 90 days trading horizon Ladprao General Hospital is expected to under-perform the Central Retail. But the stock apears to be less risky and, when comparing its historical volatility, Ladprao General Hospital is 2.94 times less risky than Central Retail. The stock trades about -0.07 of its potential returns per unit of risk. The Central Retail is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Central Retail on August 31, 2024 and sell it today you would earn a total of 525.00 from holding Central Retail or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ladprao General Hospital vs. Central Retail
Performance |
| Timeline |
| Ladprao General Hospital |
| Central Retail |
Ladprao General and Central Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ladprao General and Central Retail
The main advantage of trading using opposite Ladprao General and Central Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ladprao General position performs unexpectedly, Central Retail 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 Central Retail will offset losses from the drop in Central Retail's long position.| Ladprao General vs. Ekachai Medical Care | Ladprao General vs. Bangkok Chain Hospital | Ladprao General vs. Rajthanee Hospital Public | Ladprao General vs. Chularat Hospital Public |
| Central Retail vs. Saksiam Leasing Public | Central Retail vs. Interlink Telecom Public | Central Retail vs. Asia Sermkij Leasing | Central Retail vs. Hydrogen Freehold Leasehold |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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