Correlation Between Nawarat Patanakarn and NEP Realty
Can any of the company-specific risk be diversified away by investing in both Nawarat Patanakarn and NEP Realty 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 NEP Realty 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 NEP Realty and, you can compare the effects of market volatilities on Nawarat Patanakarn and NEP Realty 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 NEP Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nawarat Patanakarn and NEP Realty.
Diversification Opportunities for Nawarat Patanakarn and NEP Realty
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nawarat and NEP is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nawarat Patanakarn Public and NEP Realty and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEP Realty 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 NEP Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEP Realty has no effect on the direction of Nawarat Patanakarn i.e., Nawarat Patanakarn and NEP Realty go up and down completely randomly.
Pair Corralation between Nawarat Patanakarn and NEP Realty
Assuming the 90 days trading horizon Nawarat Patanakarn is expected to generate 1.15 times less return on investment than NEP Realty. In addition to that, Nawarat Patanakarn is 1.0 times more volatile than NEP Realty and. It trades about 0.04 of its total potential returns per unit of risk. NEP Realty and is currently generating about 0.04 per unit of volatility. If you would invest 28.00 in NEP Realty and on September 3, 2024 and sell it today you would lose (7.00) from holding NEP Realty and or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nawarat Patanakarn Public vs. NEP Realty and
Performance |
| Timeline |
| Nawarat Patanakarn Public |
| NEP Realty |
Nawarat Patanakarn and NEP Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nawarat Patanakarn and NEP Realty
The main advantage of trading using opposite Nawarat Patanakarn and NEP Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nawarat Patanakarn position performs unexpectedly, NEP Realty 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 NEP Realty will offset losses from the drop in NEP Realty's long position.| Nawarat Patanakarn vs. Asia Aviation Public | Nawarat Patanakarn vs. Bangkok Dusit Medical | Nawarat Patanakarn vs. Bangkok Expressway and | Nawarat Patanakarn vs. Airports of Thailand |
| NEP Realty vs. Nawarat Patanakarn Public | NEP Realty vs. Newcity Public | NEP Realty vs. Pan Asia Footwear | NEP Realty vs. Ocean Glass 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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