Correlation Between Property Perfect and Nava Nakorn
Can any of the company-specific risk be diversified away by investing in both Property Perfect and Nava Nakorn 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 Property Perfect and Nava Nakorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Property Perfect Public and Nava Nakorn Public, you can compare the effects of market volatilities on Property Perfect and Nava Nakorn 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 Property Perfect with a short position of Nava Nakorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Property Perfect and Nava Nakorn.
Diversification Opportunities for Property Perfect and Nava Nakorn
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Property and Nava is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Property Perfect Public and Nava Nakorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nava Nakorn Public and Property Perfect 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 Property Perfect Public are associated (or correlated) with Nava Nakorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nava Nakorn Public has no effect on the direction of Property Perfect i.e., Property Perfect and Nava Nakorn go up and down completely randomly.
Pair Corralation between Property Perfect and Nava Nakorn
Assuming the 90 days horizon Property Perfect is expected to generate 1.0 times less return on investment than Nava Nakorn. In addition to that, Property Perfect is 1.0 times more volatile than Nava Nakorn Public. It trades about 0.08 of its total potential returns per unit of risk. Nava Nakorn Public is currently generating about 0.08 per unit of volatility. If you would invest 179.00 in Nava Nakorn Public on November 3, 2024 and sell it today you would lose (15.00) from holding Nava Nakorn Public or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Property Perfect Public vs. Nava Nakorn Public
Performance |
| Timeline |
| Property Perfect Public |
| Nava Nakorn Public |
Property Perfect and Nava Nakorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Property Perfect and Nava Nakorn
The main advantage of trading using opposite Property Perfect and Nava Nakorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Property Perfect position performs unexpectedly, Nava Nakorn 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 Nava Nakorn will offset losses from the drop in Nava Nakorn's long position.| Property Perfect vs. Land and Houses | Property Perfect vs. Quality Houses Public | Property Perfect vs. LPN Development Public | Property Perfect vs. Siri Prime Office |
| Nava Nakorn vs. NC Housing Public | Nava Nakorn vs. LPN Development Public | Nava Nakorn vs. Property Perfect Public | Nava Nakorn vs. Lalin Property 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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