Correlation Between Nawarat Patanakarn and Tata Steel
Can any of the company-specific risk be diversified away by investing in both Nawarat Patanakarn and Tata Steel 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 Tata Steel 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 Tata Steel Public, you can compare the effects of market volatilities on Nawarat Patanakarn and Tata Steel 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 Tata Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nawarat Patanakarn and Tata Steel.
Diversification Opportunities for Nawarat Patanakarn and Tata Steel
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nawarat and Tata is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nawarat Patanakarn Public and Tata Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tata Steel 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 Tata Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tata Steel Public has no effect on the direction of Nawarat Patanakarn i.e., Nawarat Patanakarn and Tata Steel go up and down completely randomly.
Pair Corralation between Nawarat Patanakarn and Tata Steel
Assuming the 90 days trading horizon Nawarat Patanakarn Public is expected to under-perform the Tata Steel. In addition to that, Nawarat Patanakarn is 2.44 times more volatile than Tata Steel Public. It trades about -0.3 of its total potential returns per unit of risk. Tata Steel Public is currently generating about -0.04 per unit of volatility. If you would invest 68.00 in Tata Steel Public on August 25, 2024 and sell it today you would lose (1.00) from holding Tata Steel Public or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nawarat Patanakarn Public vs. Tata Steel Public
Performance |
| Timeline |
| Nawarat Patanakarn Public |
| Tata Steel Public |
Nawarat Patanakarn and Tata Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nawarat Patanakarn and Tata Steel
The main advantage of trading using opposite Nawarat Patanakarn and Tata Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nawarat Patanakarn position performs unexpectedly, Tata Steel 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 Tata Steel will offset losses from the drop in Tata Steel's long position.| Nawarat Patanakarn vs. Tata Steel Public | Nawarat Patanakarn vs. Thaifoods Group Public | Nawarat Patanakarn vs. TMT Steel Public | Nawarat Patanakarn vs. The Erawan Group |
| Tata Steel vs. TMT Steel Public | Tata Steel vs. TPI Polene Public | Tata Steel vs. TRC Construction Public | Tata Steel vs. Hana Microelectronics 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |