Correlation Between Peace Living and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Peace Living and PINTHONG INDUSTRIAL 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 Peace Living and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peace Living PCL and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Peace Living and PINTHONG INDUSTRIAL 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 Peace Living with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peace Living and PINTHONG INDUSTRIAL.
Diversification Opportunities for Peace Living and PINTHONG INDUSTRIAL
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Peace and PINTHONG is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Peace Living PCL and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and Peace Living 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 Peace Living PCL are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Peace Living i.e., Peace Living and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Peace Living and PINTHONG INDUSTRIAL
Assuming the 90 days trading horizon Peace Living PCL is expected to under-perform the PINTHONG INDUSTRIAL. But the stock apears to be less risky and, when comparing its historical volatility, Peace Living PCL is 2.83 times less risky than PINTHONG INDUSTRIAL. The stock trades about -0.09 of its potential returns per unit of risk. The PINTHONG INDUSTRIAL PARK is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 478.00 in PINTHONG INDUSTRIAL PARK on November 2, 2024 and sell it today you would earn a total of 157.00 from holding PINTHONG INDUSTRIAL PARK or generate 32.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.06% |
| Values | Daily Returns |
Peace Living PCL vs. PINTHONG INDUSTRIAL PARK
Performance |
| Timeline |
| Peace Living PCL |
| PINTHONG INDUSTRIAL PARK |
Peace Living and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peace Living and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Peace Living and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peace Living position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.| Peace Living vs. NC Housing Public | Peace Living vs. Origin Property PCL | Peace Living vs. Property Perfect Public | Peace Living vs. Britania PCL |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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