Correlation Between Phatra Leasing and Sun Vending
Can any of the company-specific risk be diversified away by investing in both Phatra Leasing and Sun Vending 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 Sun Vending 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 Sun Vending Technology, you can compare the effects of market volatilities on Phatra Leasing and Sun Vending 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 Sun Vending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and Sun Vending.
Diversification Opportunities for Phatra Leasing and Sun Vending
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Phatra and Sun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and Sun Vending Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Vending Technology 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 Sun Vending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Vending Technology has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and Sun Vending go up and down completely randomly.
Pair Corralation between Phatra Leasing and Sun Vending
Assuming the 90 days horizon Phatra Leasing Public is expected to under-perform the Sun Vending. But the stock apears to be less risky and, when comparing its historical volatility, Phatra Leasing Public is 1.05 times less risky than Sun Vending. The stock trades about -0.27 of its potential returns per unit of risk. The Sun Vending Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Sun Vending Technology on October 7, 2024 and sell it today you would earn a total of 4.00 from holding Sun Vending Technology or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phatra Leasing Public vs. Sun Vending Technology
Performance |
| Timeline |
| Phatra Leasing Public |
| Sun Vending Technology |
Phatra Leasing and Sun Vending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phatra Leasing and Sun Vending
The main advantage of trading using opposite Phatra Leasing and Sun Vending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phatra Leasing position performs unexpectedly, Sun Vending 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 Sun Vending will offset losses from the drop in Sun Vending'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 |
| Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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