Correlation Between Nawarat Patanakarn and President Bakery
Can any of the company-specific risk be diversified away by investing in both Nawarat Patanakarn and President Bakery 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 President Bakery 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 President Bakery Public, you can compare the effects of market volatilities on Nawarat Patanakarn and President Bakery 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 President Bakery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nawarat Patanakarn and President Bakery.
Diversification Opportunities for Nawarat Patanakarn and President Bakery
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nawarat and President is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nawarat Patanakarn Public and President Bakery Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on President Bakery 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 President Bakery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of President Bakery Public has no effect on the direction of Nawarat Patanakarn i.e., Nawarat Patanakarn and President Bakery go up and down completely randomly.
Pair Corralation between Nawarat Patanakarn and President Bakery
Assuming the 90 days trading horizon Nawarat Patanakarn Public is expected to generate 68.72 times more return on investment than President Bakery. However, Nawarat Patanakarn is 68.72 times more volatile than President Bakery Public. It trades about 0.04 of its potential returns per unit of risk. President Bakery Public is currently generating about -0.04 per unit of risk. If you would invest 76.00 in Nawarat Patanakarn Public on September 4, 2024 and sell it today you would lose (59.00) from holding Nawarat Patanakarn Public or give up 77.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Nawarat Patanakarn Public vs. President Bakery Public
Performance |
| Timeline |
| Nawarat Patanakarn Public |
| President Bakery Public |
Nawarat Patanakarn and President Bakery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nawarat Patanakarn and President Bakery
The main advantage of trading using opposite Nawarat Patanakarn and President Bakery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nawarat Patanakarn position performs unexpectedly, President Bakery 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 President Bakery will offset losses from the drop in President Bakery's long position.| Nawarat Patanakarn vs. Italian Thai Development Public | Nawarat Patanakarn vs. Power Line Engineering | Nawarat Patanakarn vs. Property Perfect Public | Nawarat Patanakarn vs. MK Real Estate |
| President Bakery vs. Airports of Thailand | President Bakery vs. PTT Public | President Bakery vs. Bangkok Dusit Medical | President Bakery vs. Kasikornbank 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |