Correlation Between Property Perfect and Nawarat Patanakarn
Can any of the company-specific risk be diversified away by investing in both Property Perfect 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 Property Perfect and Nawarat Patanakarn 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 Nawarat Patanakarn Public, you can compare the effects of market volatilities on Property Perfect 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 Property Perfect with a short position of Nawarat Patanakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Property Perfect and Nawarat Patanakarn.
Diversification Opportunities for Property Perfect and Nawarat Patanakarn
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Property and Nawarat is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Property Perfect Public 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 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 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 Property Perfect i.e., Property Perfect and Nawarat Patanakarn go up and down completely randomly.
Pair Corralation between Property Perfect and Nawarat Patanakarn
Assuming the 90 days horizon Property Perfect Public is expected to generate 1.0 times more return on investment than Nawarat Patanakarn. However, Property Perfect Public is 1.0 times less risky than Nawarat Patanakarn. It trades about 0.05 of its potential returns per unit of risk. Nawarat Patanakarn Public is currently generating about 0.05 per unit of risk. If you would invest 34.00 in Property Perfect Public on September 12, 2024 and sell it today you would lose (16.00) from holding Property Perfect Public or give up 47.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Property Perfect Public vs. Nawarat Patanakarn Public
Performance |
| Timeline |
| Property Perfect Public |
| Nawarat Patanakarn Public |
Property Perfect and Nawarat Patanakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Property Perfect and Nawarat Patanakarn
The main advantage of trading using opposite Property Perfect and Nawarat Patanakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Property Perfect 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.| Property Perfect vs. Land and Houses | Property Perfect vs. Quality Houses Public | Property Perfect vs. LPN Development Public | Property Perfect vs. Siri Prime Office |
| Nawarat Patanakarn vs. Italian Thai Development Public | Nawarat Patanakarn vs. Power Line Engineering | Nawarat Patanakarn vs. Property Perfect Public | Nawarat Patanakarn vs. MK Real Estate |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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