Correlation Between Ladprao General and Turnkey Communication
Can any of the company-specific risk be diversified away by investing in both Ladprao General and Turnkey Communication 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 Turnkey Communication 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 Turnkey Communication Services, you can compare the effects of market volatilities on Ladprao General and Turnkey Communication 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 Turnkey Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ladprao General and Turnkey Communication.
Diversification Opportunities for Ladprao General and Turnkey Communication
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ladprao and Turnkey is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ladprao General Hospital and Turnkey Communication Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turnkey Communication 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 Turnkey Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turnkey Communication has no effect on the direction of Ladprao General i.e., Ladprao General and Turnkey Communication go up and down completely randomly.
Pair Corralation between Ladprao General and Turnkey Communication
Assuming the 90 days trading horizon Ladprao General Hospital is expected to generate 0.33 times more return on investment than Turnkey Communication. However, Ladprao General Hospital is 3.04 times less risky than Turnkey Communication. It trades about -0.07 of its potential returns per unit of risk. Turnkey Communication Services is currently generating about -0.15 per unit of risk. If you would invest 449.00 in Ladprao General Hospital on August 31, 2024 and sell it today you would lose (15.00) from holding Ladprao General Hospital or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ladprao General Hospital vs. Turnkey Communication Services
Performance |
| Timeline |
| Ladprao General Hospital |
| Turnkey Communication |
Ladprao General and Turnkey Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ladprao General and Turnkey Communication
The main advantage of trading using opposite Ladprao General and Turnkey Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ladprao General position performs unexpectedly, Turnkey Communication 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 Turnkey Communication will offset losses from the drop in Turnkey Communication'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 |
| Turnkey Communication vs. Sabuy Technology Public | Turnkey Communication vs. Ngern Tid Lor | Turnkey Communication vs. SVI 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |