Correlation Between Micro Leasing and CENTRAL RETAIL
Can any of the company-specific risk be diversified away by investing in both Micro Leasing 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 Micro Leasing and CENTRAL RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micro Leasing Public and CENTRAL RETAIL P, you can compare the effects of market volatilities on Micro Leasing 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 Micro Leasing with a short position of CENTRAL RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micro Leasing and CENTRAL RETAIL.
Diversification Opportunities for Micro Leasing and CENTRAL RETAIL
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Micro and CENTRAL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Micro Leasing Public and CENTRAL RETAIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL RETAIL P and Micro Leasing 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 Micro Leasing Public 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 P has no effect on the direction of Micro Leasing i.e., Micro Leasing and CENTRAL RETAIL go up and down completely randomly.
Pair Corralation between Micro Leasing and CENTRAL RETAIL
Assuming the 90 days trading horizon Micro Leasing Public is expected to under-perform the CENTRAL RETAIL. In addition to that, Micro Leasing is 4.15 times more volatile than CENTRAL RETAIL P. It trades about -0.07 of its total potential returns per unit of risk. CENTRAL RETAIL P is currently generating about -0.06 per unit of volatility. If you would invest 4,265 in CENTRAL RETAIL P on September 3, 2024 and sell it today you would lose (915.00) from holding CENTRAL RETAIL P or give up 21.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micro Leasing Public vs. CENTRAL RETAIL P
Performance |
| Timeline |
| Micro Leasing Public |
| CENTRAL RETAIL P |
Micro Leasing and CENTRAL RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micro Leasing and CENTRAL RETAIL
The main advantage of trading using opposite Micro Leasing and CENTRAL RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micro Leasing 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.| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Muangthai Capital Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
| CENTRAL RETAIL vs. Central Retail | CENTRAL RETAIL vs. The Erawan Group | CENTRAL RETAIL vs. Autocorp Holding Public | CENTRAL RETAIL vs. XSpring Capital 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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