Correlation Between Micro Leasing and Srisawad Power
Can any of the company-specific risk be diversified away by investing in both Micro Leasing and Srisawad Power 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 Srisawad Power 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 Srisawad Power 1979, you can compare the effects of market volatilities on Micro Leasing and Srisawad Power 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 Srisawad Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micro Leasing and Srisawad Power.
Diversification Opportunities for Micro Leasing and Srisawad Power
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Micro and Srisawad is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Micro Leasing Public and Srisawad Power 1979 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Power 1979 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 Srisawad Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Power 1979 has no effect on the direction of Micro Leasing i.e., Micro Leasing and Srisawad Power go up and down completely randomly.
Pair Corralation between Micro Leasing and Srisawad Power
Assuming the 90 days trading horizon Micro Leasing Public is expected to under-perform the Srisawad Power. In addition to that, Micro Leasing is 2.15 times more volatile than Srisawad Power 1979. It trades about -0.33 of its total potential returns per unit of risk. Srisawad Power 1979 is currently generating about 0.07 per unit of volatility. If you would invest 3,850 in Srisawad Power 1979 on September 13, 2024 and sell it today you would earn a total of 75.00 from holding Srisawad Power 1979 or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micro Leasing Public vs. Srisawad Power 1979
Performance |
| Timeline |
| Micro Leasing Public |
| Srisawad Power 1979 |
Micro Leasing and Srisawad Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micro Leasing and Srisawad Power
The main advantage of trading using opposite Micro Leasing and Srisawad Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micro Leasing position performs unexpectedly, Srisawad Power 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 Srisawad Power will offset losses from the drop in Srisawad Power's long position.| Micro Leasing vs. Srisawad Power 1979 | Micro Leasing vs. Muangthai Capital Public | Micro Leasing vs. Krungthai Card PCL |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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