Correlation Between Premier Marketing and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Premier Marketing and PINTHONG INDUSTRIAL 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 Premier Marketing and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Marketing Public and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Premier Marketing and PINTHONG INDUSTRIAL 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 Premier Marketing with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Marketing and PINTHONG INDUSTRIAL.
Diversification Opportunities for Premier Marketing and PINTHONG INDUSTRIAL
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Premier and PINTHONG is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Premier Marketing Public and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and Premier Marketing 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 Premier Marketing Public are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Premier Marketing i.e., Premier Marketing and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Premier Marketing and PINTHONG INDUSTRIAL
Assuming the 90 days horizon Premier Marketing is expected to generate 5.57 times less return on investment than PINTHONG INDUSTRIAL. But when comparing it to its historical volatility, Premier Marketing Public is 2.15 times less risky than PINTHONG INDUSTRIAL. It trades about 0.03 of its potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 297.00 in PINTHONG INDUSTRIAL PARK on August 27, 2024 and sell it today you would earn a total of 318.00 from holding PINTHONG INDUSTRIAL PARK or generate 107.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Marketing Public vs. PINTHONG INDUSTRIAL PARK
Performance |
| Timeline |
| Premier Marketing Public |
| PINTHONG INDUSTRIAL PARK |
Premier Marketing and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Marketing and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Premier Marketing and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Marketing position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.The idea behind Premier Marketing Public and PINTHONG INDUSTRIAL PARK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PINTHONG INDUSTRIAL vs. Country Group Development | PINTHONG INDUSTRIAL vs. Everland Public | PINTHONG INDUSTRIAL vs. Bangkok Land Public | PINTHONG INDUSTRIAL vs. Ananda Development 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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