Correlation Between Namyong Terminal and Pylon Public
Can any of the company-specific risk be diversified away by investing in both Namyong Terminal and Pylon Public 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 Pylon Public 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 Pylon Public, you can compare the effects of market volatilities on Namyong Terminal and Pylon Public 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 Pylon Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namyong Terminal and Pylon Public.
Diversification Opportunities for Namyong Terminal and Pylon Public
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Namyong and Pylon is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Namyong Terminal PCL and Pylon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pylon 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 Pylon Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pylon Public has no effect on the direction of Namyong Terminal i.e., Namyong Terminal and Pylon Public go up and down completely randomly.
Pair Corralation between Namyong Terminal and Pylon Public
Assuming the 90 days trading horizon Namyong Terminal is expected to generate 325.01 times less return on investment than Pylon Public. But when comparing it to its historical volatility, Namyong Terminal PCL is 67.63 times less risky than Pylon Public. It trades about 0.02 of its potential returns per unit of risk. Pylon Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Pylon Public on November 2, 2024 and sell it today you would earn a total of 186.00 from holding Pylon Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Namyong Terminal PCL vs. Pylon Public
Performance |
| Timeline |
| Namyong Terminal PCL |
| Pylon Public |
Namyong Terminal and Pylon Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namyong Terminal and Pylon Public
The main advantage of trading using opposite Namyong Terminal and Pylon Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namyong Terminal position performs unexpectedly, Pylon Public 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 Pylon Public will offset losses from the drop in Pylon Public's long position.| Namyong Terminal vs. Plan B Media | Namyong Terminal vs. Major Cineplex Group | Namyong Terminal vs. Precious Shipping Public | Namyong Terminal vs. Somboon Advance Technology |
| Pylon Public vs. Seafco Public | Pylon Public vs. PTG Energy PCL | Pylon Public vs. CH Karnchang Public | Pylon Public vs. Ratchthani Leasing 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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