Correlation Between Pan Asia and Nawarat Patanakarn
Can any of the company-specific risk be diversified away by investing in both Pan Asia and Nawarat Patanakarn 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 Pan Asia and Nawarat Patanakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan Asia Footwear and Nawarat Patanakarn Public, you can compare the effects of market volatilities on Pan Asia and Nawarat Patanakarn 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 Pan Asia with a short position of Nawarat Patanakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Asia and Nawarat Patanakarn.
Diversification Opportunities for Pan Asia and Nawarat Patanakarn
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pan and Nawarat is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Pan Asia Footwear and Nawarat Patanakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nawarat Patanakarn Public and Pan Asia 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 Pan Asia Footwear are associated (or correlated) with Nawarat Patanakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nawarat Patanakarn Public has no effect on the direction of Pan Asia i.e., Pan Asia and Nawarat Patanakarn go up and down completely randomly.
Pair Corralation between Pan Asia and Nawarat Patanakarn
If you would invest 10.00 in Nawarat Patanakarn Public on January 12, 2025 and sell it today you would earn a total of 0.00 from holding Nawarat Patanakarn Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pan Asia Footwear vs. Nawarat Patanakarn Public
Performance |
| Timeline |
| Pan Asia Footwear |
| Nawarat Patanakarn Public |
Pan Asia and Nawarat Patanakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Asia and Nawarat Patanakarn
The main advantage of trading using opposite Pan Asia and Nawarat Patanakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Asia position performs unexpectedly, Nawarat Patanakarn 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 Nawarat Patanakarn will offset losses from the drop in Nawarat Patanakarn's long position.| Pan Asia vs. PTT Public | Pan Asia vs. PTT Public | Pan Asia vs. PTT Global Chemical | Pan Asia vs. CP ALL Public |
| Nawarat Patanakarn vs. WICE Logistics PCL | Nawarat Patanakarn vs. Asia Aviation Public | Nawarat Patanakarn vs. Humanica Public | Nawarat Patanakarn vs. Jay Mart 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |