Correlation Between NAT ABSOLUTE and Porn Prom
Can any of the company-specific risk be diversified away by investing in both NAT ABSOLUTE and Porn Prom 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 NAT ABSOLUTE and Porn Prom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAT ABSOLUTE TECHNOLOGIES and Porn Prom Metal, you can compare the effects of market volatilities on NAT ABSOLUTE and Porn Prom 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 NAT ABSOLUTE with a short position of Porn Prom. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAT ABSOLUTE and Porn Prom.
Diversification Opportunities for NAT ABSOLUTE and Porn Prom
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NAT and Porn is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding NAT ABSOLUTE TECHNOLOGIES and Porn Prom Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porn Prom Metal and NAT ABSOLUTE 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 NAT ABSOLUTE TECHNOLOGIES are associated (or correlated) with Porn Prom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porn Prom Metal has no effect on the direction of NAT ABSOLUTE i.e., NAT ABSOLUTE and Porn Prom go up and down completely randomly.
Pair Corralation between NAT ABSOLUTE and Porn Prom
Assuming the 90 days trading horizon NAT ABSOLUTE TECHNOLOGIES is expected to generate 0.18 times more return on investment than Porn Prom. However, NAT ABSOLUTE TECHNOLOGIES is 5.5 times less risky than Porn Prom. It trades about -0.46 of its potential returns per unit of risk. Porn Prom Metal is currently generating about -0.26 per unit of risk. If you would invest 482.00 in NAT ABSOLUTE TECHNOLOGIES on August 28, 2024 and sell it today you would lose (46.00) from holding NAT ABSOLUTE TECHNOLOGIES or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAT ABSOLUTE TECHNOLOGIES vs. Porn Prom Metal
Performance |
| Timeline |
| NAT ABSOLUTE TECHNOLOGIES |
| Porn Prom Metal |
NAT ABSOLUTE and Porn Prom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAT ABSOLUTE and Porn Prom
The main advantage of trading using opposite NAT ABSOLUTE and Porn Prom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAT ABSOLUTE position performs unexpectedly, Porn Prom 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 Porn Prom will offset losses from the drop in Porn Prom's long position.| NAT ABSOLUTE vs. Halcyon Technology Public | NAT ABSOLUTE vs. Kasikornbank Public | NAT ABSOLUTE vs. Information and Communication | NAT ABSOLUTE vs. Kiatnakin Phatra Bank |
| Porn Prom vs. WHA Public | Porn Prom vs. Siri Prime Office | Porn Prom vs. Ananda Development Public | Porn Prom vs. Bangkok Land 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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