Correlation Between Phatra Leasing and Lease IT
Can any of the company-specific risk be diversified away by investing in both Phatra Leasing and Lease IT 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 Lease IT 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 Lease IT Public, you can compare the effects of market volatilities on Phatra Leasing and Lease IT 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 Lease IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and Lease IT.
Diversification Opportunities for Phatra Leasing and Lease IT
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Phatra and Lease is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and Lease IT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lease IT Public 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 Lease IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lease IT Public has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and Lease IT go up and down completely randomly.
Pair Corralation between Phatra Leasing and Lease IT
Assuming the 90 days horizon Phatra Leasing Public is expected to generate 0.36 times more return on investment than Lease IT. However, Phatra Leasing Public is 2.77 times less risky than Lease IT. It trades about -0.27 of its potential returns per unit of risk. Lease IT Public is currently generating about -0.22 per unit of risk. If you would invest 163.00 in Phatra Leasing Public on October 7, 2024 and sell it today you would lose (12.00) from holding Phatra Leasing Public or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phatra Leasing Public vs. Lease IT Public
Performance |
| Timeline |
| Phatra Leasing Public |
| Lease IT Public |
Phatra Leasing and Lease IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phatra Leasing and Lease IT
The main advantage of trading using opposite Phatra Leasing and Lease IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phatra Leasing position performs unexpectedly, Lease IT 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 Lease IT will offset losses from the drop in Lease IT's 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 |
| Lease IT vs. Multibax Public | Lease IT vs. Forth Smart Service | Lease IT vs. LPN Development Public | Lease IT vs. Netbay 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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