Correlation Between PINTHONG INDUSTRIAL and Asset Five
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL and Asset Five 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 PINTHONG INDUSTRIAL and Asset Five into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PINTHONG INDUSTRIAL PARK and Asset Five Group, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL and Asset Five 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 PINTHONG INDUSTRIAL with a short position of Asset Five. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and Asset Five.
Diversification Opportunities for PINTHONG INDUSTRIAL and Asset Five
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PINTHONG and Asset is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK and Asset Five Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asset Five Group and PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL PARK are associated (or correlated) with Asset Five. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asset Five Group has no effect on the direction of PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and Asset Five go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and Asset Five
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL is expected to generate 9.45 times less return on investment than Asset Five. But when comparing it to its historical volatility, PINTHONG INDUSTRIAL PARK is 16.65 times less risky than Asset Five. It trades about 0.07 of its potential returns per unit of risk. Asset Five Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Asset Five Group on September 3, 2024 and sell it today you would lose (152.00) from holding Asset Five Group or give up 35.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. Asset Five Group
Performance |
| Timeline |
| PINTHONG INDUSTRIAL PARK |
| Asset Five Group |
PINTHONG INDUSTRIAL and Asset Five Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PINTHONG INDUSTRIAL and Asset Five
The main advantage of trading using opposite PINTHONG INDUSTRIAL and Asset Five positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL position performs unexpectedly, Asset Five 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 Asset Five will offset losses from the drop in Asset Five's long position.| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset Public |
| Asset Five vs. AP Public | Asset Five vs. Electricity Generating Public | Asset Five vs. Com7 PCL | Asset Five vs. Bangkok Dusit Medical |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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