Correlation Between Navakij Insurance and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Navakij Insurance and PINTHONG INDUSTRIAL 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 Navakij Insurance and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Navakij Insurance and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Navakij Insurance and PINTHONG INDUSTRIAL 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 Navakij Insurance with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navakij Insurance and PINTHONG INDUSTRIAL.
Diversification Opportunities for Navakij Insurance and PINTHONG INDUSTRIAL
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Navakij and PINTHONG is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Navakij Insurance and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and Navakij Insurance 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 The Navakij Insurance are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Navakij Insurance i.e., Navakij Insurance and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Navakij Insurance and PINTHONG INDUSTRIAL
Assuming the 90 days trading horizon The Navakij Insurance is expected to generate 17.53 times more return on investment than PINTHONG INDUSTRIAL. However, Navakij Insurance is 17.53 times more volatile than PINTHONG INDUSTRIAL PARK. It trades about 0.06 of its potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.07 per unit of risk. If you would invest 2,650 in The Navakij Insurance on September 14, 2024 and sell it today you would lose (160.00) from holding The Navakij Insurance or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Navakij Insurance vs. PINTHONG INDUSTRIAL PARK
Performance |
| Timeline |
| Navakij Insurance |
| PINTHONG INDUSTRIAL PARK |
Navakij Insurance and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navakij Insurance and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Navakij Insurance and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navakij Insurance position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity Public |
| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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