Correlation Between PINTHONG INDUSTRIAL and Peace Living
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL and Peace Living 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 Peace Living 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 Peace Living PCL, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL and Peace Living 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 Peace Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and Peace Living.
Diversification Opportunities for PINTHONG INDUSTRIAL and Peace Living
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PINTHONG and Peace is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK and Peace Living PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peace Living PCL 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 Peace Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peace Living PCL has no effect on the direction of PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and Peace Living go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and Peace Living
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL PARK is expected to generate 1.7 times more return on investment than Peace Living. However, PINTHONG INDUSTRIAL is 1.7 times more volatile than Peace Living PCL. It trades about 0.07 of its potential returns per unit of risk. Peace Living PCL is currently generating about -0.06 per unit of risk. If you would invest 297.00 in PINTHONG INDUSTRIAL PARK on September 2, 2024 and sell it today you would earn a total of 333.00 from holding PINTHONG INDUSTRIAL PARK or generate 112.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. Peace Living PCL
Performance |
| Timeline |
| PINTHONG INDUSTRIAL PARK |
| Peace Living PCL |
PINTHONG INDUSTRIAL and Peace Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PINTHONG INDUSTRIAL and Peace Living
The main advantage of trading using opposite PINTHONG INDUSTRIAL and Peace Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL position performs unexpectedly, Peace Living 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 Peace Living will offset losses from the drop in Peace Living'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 |
| Peace Living vs. AP Public | Peace Living vs. TRC Construction Public | Peace Living vs. Bangkok Expressway and | Peace Living vs. Lohakit Metal 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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