Correlation Between Phatra Leasing and SC Asset
Can any of the company-specific risk be diversified away by investing in both Phatra Leasing and SC Asset 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 SC Asset 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 SC Asset, you can compare the effects of market volatilities on Phatra Leasing and SC Asset 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 SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and SC Asset.
Diversification Opportunities for Phatra Leasing and SC Asset
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Phatra and SC Asset is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset 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 SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and SC Asset go up and down completely randomly.
Pair Corralation between Phatra Leasing and SC Asset
Assuming the 90 days horizon Phatra Leasing is expected to generate 1.01 times less return on investment than SC Asset. In addition to that, Phatra Leasing is 1.0 times more volatile than SC Asset. It trades about 0.04 of its total potential returns per unit of risk. SC Asset is currently generating about 0.04 per unit of volatility. If you would invest 362.00 in SC Asset on September 12, 2024 and sell it today you would lose (70.00) from holding SC Asset or give up 19.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
Phatra Leasing Public vs. SC Asset
Performance |
| Timeline |
| Phatra Leasing Public |
| SC Asset |
Phatra Leasing and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phatra Leasing and SC Asset
The main advantage of trading using opposite Phatra Leasing and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phatra Leasing position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset's long position.| Phatra Leasing vs. KGI Securities Public | Phatra Leasing vs. Lalin Property Public | Phatra Leasing vs. Hwa Fong Rubber | Phatra Leasing vs. MCS Steel Public |
| SC Asset vs. Phatra Leasing Public | SC Asset vs. Mitsib Leasing Public | SC Asset vs. AJ Advance Technology | SC Asset vs. Global Green Chemicals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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