Correlation Between Newcity Public and Navakij Insurance
Can any of the company-specific risk be diversified away by investing in both Newcity Public and Navakij Insurance 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 Newcity Public and Navakij Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcity Public and The Navakij Insurance, you can compare the effects of market volatilities on Newcity Public and Navakij Insurance 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 Newcity Public with a short position of Navakij Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcity Public and Navakij Insurance.
Diversification Opportunities for Newcity Public and Navakij Insurance
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Newcity and Navakij is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Newcity Public and The Navakij Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navakij Insurance and Newcity Public 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 Newcity Public are associated (or correlated) with Navakij Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navakij Insurance has no effect on the direction of Newcity Public i.e., Newcity Public and Navakij Insurance go up and down completely randomly.
Pair Corralation between Newcity Public and Navakij Insurance
Assuming the 90 days horizon Newcity Public is expected to generate 1.01 times more return on investment than Navakij Insurance. However, Newcity Public is 1.01 times more volatile than The Navakij Insurance. It trades about 0.05 of its potential returns per unit of risk. The Navakij Insurance is currently generating about 0.04 per unit of risk. If you would invest 111.00 in Newcity Public on September 14, 2024 and sell it today you would earn a total of 177.00 from holding Newcity Public or generate 159.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Newcity Public vs. The Navakij Insurance
Performance |
| Timeline |
| Newcity Public |
| Navakij Insurance |
Newcity Public and Navakij Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcity Public and Navakij Insurance
The main advantage of trading using opposite Newcity Public and Navakij Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcity Public position performs unexpectedly, Navakij Insurance 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 Navakij Insurance will offset losses from the drop in Navakij Insurance's long position.| Newcity Public vs. Hwa Fong Rubber | Newcity Public vs. AAPICO Hitech Public | Newcity Public vs. Haad Thip Public | Newcity Public vs. Italian Thai Development Public |
| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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