Correlation Between Phatra Leasing and Golden Ventures
Can any of the company-specific risk be diversified away by investing in both Phatra Leasing and Golden Ventures 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 Phatra Leasing and Golden Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phatra Leasing Public and Golden Ventures Leasehold, you can compare the effects of market volatilities on Phatra Leasing and Golden Ventures 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 Phatra Leasing with a short position of Golden Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and Golden Ventures.
Diversification Opportunities for Phatra Leasing and Golden Ventures
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phatra and Golden is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and Golden Ventures Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ventures Leasehold and Phatra Leasing 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 Phatra Leasing Public are associated (or correlated) with Golden Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ventures Leasehold has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and Golden Ventures go up and down completely randomly.
Pair Corralation between Phatra Leasing and Golden Ventures
Assuming the 90 days horizon Phatra Leasing Public is expected to under-perform the Golden Ventures. In addition to that, Phatra Leasing is 1.65 times more volatile than Golden Ventures Leasehold. It trades about -0.27 of its total potential returns per unit of risk. Golden Ventures Leasehold is currently generating about -0.08 per unit of volatility. If you would invest 664.00 in Golden Ventures Leasehold on October 7, 2024 and sell it today you would lose (9.00) from holding Golden Ventures Leasehold or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phatra Leasing Public vs. Golden Ventures Leasehold
Performance |
| Timeline |
| Phatra Leasing Public |
| Golden Ventures Leasehold |
Phatra Leasing and Golden Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phatra Leasing and Golden Ventures
The main advantage of trading using opposite Phatra Leasing and Golden Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phatra Leasing position performs unexpectedly, Golden Ventures 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 Golden Ventures will offset losses from the drop in Golden Ventures' long position.| Phatra Leasing vs. Jasmine Telecom Systems | Phatra Leasing vs. Chiangmai Frozen Foods | Phatra Leasing vs. Asia Hotel Public | Phatra Leasing vs. Vichitbhan Palmoil Public |
| Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. CPN Retail Growth | Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. LH Shopping Centers |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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