Correlation Between Namyong Terminal and Ama Marine
Can any of the company-specific risk be diversified away by investing in both Namyong Terminal and Ama Marine 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 Namyong Terminal and Ama Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namyong Terminal PCL and Ama Marine Public, you can compare the effects of market volatilities on Namyong Terminal and Ama Marine 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 Namyong Terminal with a short position of Ama Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namyong Terminal and Ama Marine.
Diversification Opportunities for Namyong Terminal and Ama Marine
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Namyong and Ama is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Namyong Terminal PCL and Ama Marine Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ama Marine Public and Namyong Terminal 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 Namyong Terminal PCL are associated (or correlated) with Ama Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ama Marine Public has no effect on the direction of Namyong Terminal i.e., Namyong Terminal and Ama Marine go up and down completely randomly.
Pair Corralation between Namyong Terminal and Ama Marine
Assuming the 90 days trading horizon Namyong Terminal PCL is expected to under-perform the Ama Marine. In addition to that, Namyong Terminal is 1.05 times more volatile than Ama Marine Public. It trades about -0.06 of its total potential returns per unit of risk. Ama Marine Public is currently generating about 0.05 per unit of volatility. If you would invest 362.00 in Ama Marine Public on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Ama Marine Public or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namyong Terminal PCL vs. Ama Marine Public
Performance |
| Timeline |
| Namyong Terminal PCL |
| Ama Marine Public |
Namyong Terminal and Ama Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namyong Terminal and Ama Marine
The main advantage of trading using opposite Namyong Terminal and Ama Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namyong Terminal position performs unexpectedly, Ama Marine 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 Ama Marine will offset losses from the drop in Ama Marine's long position.| Namyong Terminal vs. Asia Aviation Public | Namyong Terminal vs. Bangkok Dusit Medical | Namyong Terminal vs. Bangkok Expressway and | Namyong Terminal vs. Airports of Thailand |
| Ama Marine vs. Namyong Terminal PCL | Ama Marine vs. Prima Marine Public | Ama Marine vs. Precious Shipping Public | Ama Marine vs. Vibhavadi Medical Center |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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