Correlation Between PINTHONG INDUSTRIAL and Ladprao General
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL and Ladprao General 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 Ladprao General 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 Ladprao General Hospital, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL and Ladprao General 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 Ladprao General. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and Ladprao General.
Diversification Opportunities for PINTHONG INDUSTRIAL and Ladprao General
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PINTHONG and Ladprao is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK and Ladprao General Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladprao General Hospital 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 Ladprao General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladprao General Hospital has no effect on the direction of PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and Ladprao General go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and Ladprao General
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL PARK is expected to generate 4.5 times more return on investment than Ladprao General. However, PINTHONG INDUSTRIAL is 4.5 times more volatile than Ladprao General Hospital. It trades about 0.03 of its potential returns per unit of risk. Ladprao General Hospital is currently generating about -0.18 per unit of risk. If you would invest 610.00 in PINTHONG INDUSTRIAL PARK on August 27, 2024 and sell it today you would earn a total of 5.00 from holding PINTHONG INDUSTRIAL PARK or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. Ladprao General Hospital
Performance |
| Timeline |
| PINTHONG INDUSTRIAL PARK |
| Ladprao General Hospital |
PINTHONG INDUSTRIAL and Ladprao General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PINTHONG INDUSTRIAL and Ladprao General
The main advantage of trading using opposite PINTHONG INDUSTRIAL and Ladprao General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL position performs unexpectedly, Ladprao General 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 Ladprao General will offset losses from the drop in Ladprao General's long position.| PINTHONG INDUSTRIAL vs. JAS Asset PCL | PINTHONG INDUSTRIAL vs. Country Group Development | PINTHONG INDUSTRIAL vs. Everland Public | PINTHONG INDUSTRIAL vs. Bangkok Land 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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