Correlation Between Paycom Soft and Thai Nakarin
Can any of the company-specific risk be diversified away by investing in both Paycom Soft and Thai Nakarin 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 Paycom Soft and Thai Nakarin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paycom Soft and Thai Nakarin Hospital, you can compare the effects of market volatilities on Paycom Soft and Thai Nakarin 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 Paycom Soft with a short position of Thai Nakarin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paycom Soft and Thai Nakarin.
Diversification Opportunities for Paycom Soft and Thai Nakarin
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Paycom and Thai is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Paycom Soft and Thai Nakarin Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Nakarin Hospital and Paycom Soft 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 Paycom Soft are associated (or correlated) with Thai Nakarin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Nakarin Hospital has no effect on the direction of Paycom Soft i.e., Paycom Soft and Thai Nakarin go up and down completely randomly.
Pair Corralation between Paycom Soft and Thai Nakarin
Given the investment horizon of 90 days Paycom Soft is expected to generate 2.54 times more return on investment than Thai Nakarin. However, Paycom Soft is 2.54 times more volatile than Thai Nakarin Hospital. It trades about 0.23 of its potential returns per unit of risk. Thai Nakarin Hospital is currently generating about 0.26 per unit of risk. If you would invest 21,112 in Paycom Soft on September 5, 2024 and sell it today you would earn a total of 2,062 from holding Paycom Soft or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Paycom Soft vs. Thai Nakarin Hospital
Performance |
| Timeline |
| Paycom Soft |
| Thai Nakarin Hospital |
Paycom Soft and Thai Nakarin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paycom Soft and Thai Nakarin
The main advantage of trading using opposite Paycom Soft and Thai Nakarin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paycom Soft position performs unexpectedly, Thai Nakarin 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 Thai Nakarin will offset losses from the drop in Thai Nakarin's long position.| Paycom Soft vs. Atlassian Corp Plc | Paycom Soft vs. Datadog | Paycom Soft vs. ServiceNow | Paycom Soft vs. Trade Desk |
| Thai Nakarin vs. Vibhavadi Medical Center | Thai Nakarin vs. Ladprao General Hospital | Thai Nakarin vs. Ekachai Medical Care | Thai Nakarin vs. Chularat Hospital 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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