Correlation Between Nusasiri Public and Nava Nakorn
Can any of the company-specific risk be diversified away by investing in both Nusasiri Public and Nava Nakorn 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 Nusasiri Public and Nava Nakorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nusasiri Public and Nava Nakorn Public, you can compare the effects of market volatilities on Nusasiri Public and Nava Nakorn 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 Nusasiri Public with a short position of Nava Nakorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nusasiri Public and Nava Nakorn.
Diversification Opportunities for Nusasiri Public and Nava Nakorn
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nusasiri and Nava is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nusasiri Public and Nava Nakorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nava Nakorn Public and Nusasiri 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 Nusasiri Public are associated (or correlated) with Nava Nakorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nava Nakorn Public has no effect on the direction of Nusasiri Public i.e., Nusasiri Public and Nava Nakorn go up and down completely randomly.
Pair Corralation between Nusasiri Public and Nava Nakorn
Assuming the 90 days trading horizon Nusasiri Public is expected to under-perform the Nava Nakorn. In addition to that, Nusasiri Public is 2.86 times more volatile than Nava Nakorn Public. It trades about -0.07 of its total potential returns per unit of risk. Nava Nakorn Public is currently generating about -0.15 per unit of volatility. If you would invest 183.00 in Nava Nakorn Public on September 5, 2024 and sell it today you would lose (9.00) from holding Nava Nakorn Public or give up 4.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nusasiri Public vs. Nava Nakorn Public
Performance |
| Timeline |
| Nusasiri Public |
| Nava Nakorn Public |
Nusasiri Public and Nava Nakorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nusasiri Public and Nava Nakorn
The main advantage of trading using opposite Nusasiri Public and Nava Nakorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nusasiri Public position performs unexpectedly, Nava Nakorn 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 Nava Nakorn will offset losses from the drop in Nava Nakorn's long position.| Nusasiri Public vs. Property Perfect Public | Nusasiri Public vs. SC Asset | Nusasiri Public vs. Origin Property PCL | Nusasiri Public vs. Ananda Development Public |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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