Correlation Between Plan B and Loxley Public
Can any of the company-specific risk be diversified away by investing in both Plan B and Loxley Public 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 Plan B and Loxley Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plan B Media and Loxley Public, you can compare the effects of market volatilities on Plan B and Loxley Public 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 Plan B with a short position of Loxley Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plan B and Loxley Public.
Diversification Opportunities for Plan B and Loxley Public
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plan and Loxley is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Plan B Media and Loxley Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loxley Public and Plan B 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 Plan B Media are associated (or correlated) with Loxley Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loxley Public has no effect on the direction of Plan B i.e., Plan B and Loxley Public go up and down completely randomly.
Pair Corralation between Plan B and Loxley Public
Assuming the 90 days trading horizon Plan B Media is expected to generate 1.82 times more return on investment than Loxley Public. However, Plan B is 1.82 times more volatile than Loxley Public. It trades about 0.05 of its potential returns per unit of risk. Loxley Public is currently generating about -0.09 per unit of risk. If you would invest 703.00 in Plan B Media on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Plan B Media or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Plan B Media vs. Loxley Public
Performance |
| Timeline |
| Plan B Media |
| Loxley Public |
Plan B and Loxley Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plan B and Loxley Public
The main advantage of trading using opposite Plan B and Loxley Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plan B position performs unexpectedly, Loxley Public 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 Loxley Public will offset losses from the drop in Loxley Public's long position.| Plan B vs. VGI Public | Plan B vs. Minor International Public | Plan B vs. BTS Group Holdings | Plan B vs. Bangkok Dusit Medical |
| Loxley Public vs. AP Public | Loxley Public vs. Jasmine International Public | Loxley Public vs. Asia Plus Group | Loxley Public vs. Bangkok Aviation Fuel |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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