Correlation Between Nawarat Patanakarn and IT City
Can any of the company-specific risk be diversified away by investing in both Nawarat Patanakarn and IT City 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 Nawarat Patanakarn and IT City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nawarat Patanakarn Public and IT City Public, you can compare the effects of market volatilities on Nawarat Patanakarn and IT City 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 Nawarat Patanakarn with a short position of IT City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nawarat Patanakarn and IT City.
Diversification Opportunities for Nawarat Patanakarn and IT City
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nawarat and IT City is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nawarat Patanakarn Public and IT City Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IT City Public and Nawarat Patanakarn 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 Nawarat Patanakarn Public are associated (or correlated) with IT City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IT City Public has no effect on the direction of Nawarat Patanakarn i.e., Nawarat Patanakarn and IT City go up and down completely randomly.
Pair Corralation between Nawarat Patanakarn and IT City
Assuming the 90 days trading horizon Nawarat Patanakarn is expected to generate 1.08 times less return on investment than IT City. In addition to that, Nawarat Patanakarn is 1.0 times more volatile than IT City Public. It trades about 0.08 of its total potential returns per unit of risk. IT City Public is currently generating about 0.08 per unit of volatility. If you would invest 385.00 in IT City Public on September 1, 2024 and sell it today you would earn a total of 57.00 from holding IT City Public or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nawarat Patanakarn Public vs. IT City Public
Performance |
| Timeline |
| Nawarat Patanakarn Public |
| IT City Public |
Nawarat Patanakarn and IT City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nawarat Patanakarn and IT City
The main advantage of trading using opposite Nawarat Patanakarn and IT City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nawarat Patanakarn position performs unexpectedly, IT City 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 IT City will offset losses from the drop in IT City's long position.| Nawarat Patanakarn vs. Gulf Energy Development | Nawarat Patanakarn vs. Energy Absolute Public | Nawarat Patanakarn vs. WHA Public | Nawarat Patanakarn vs. Bangkok Expressway and |
| IT City vs. Internet Thailand Public | IT City vs. Jasmine International Public | IT City vs. Hana Microelectronics Public | IT City vs. Italian Thai Development 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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