Correlation Between Praram 9 and Halcyon Technology
Can any of the company-specific risk be diversified away by investing in both Praram 9 and Halcyon Technology 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 Praram 9 and Halcyon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Praram 9 Hospital and Halcyon Technology Public, you can compare the effects of market volatilities on Praram 9 and Halcyon Technology 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 Praram 9 with a short position of Halcyon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praram 9 and Halcyon Technology.
Diversification Opportunities for Praram 9 and Halcyon Technology
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Praram and Halcyon is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Praram 9 Hospital and Halcyon Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halcyon Technology Public and Praram 9 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 Praram 9 Hospital are associated (or correlated) with Halcyon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halcyon Technology Public has no effect on the direction of Praram 9 i.e., Praram 9 and Halcyon Technology go up and down completely randomly.
Pair Corralation between Praram 9 and Halcyon Technology
Assuming the 90 days trading horizon Praram 9 is expected to generate 1.7 times less return on investment than Halcyon Technology. But when comparing it to its historical volatility, Praram 9 Hospital is 2.31 times less risky than Halcyon Technology. It trades about 0.13 of its potential returns per unit of risk. Halcyon Technology Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Halcyon Technology Public on September 2, 2024 and sell it today you would earn a total of 137.00 from holding Halcyon Technology Public or generate 50.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praram 9 Hospital vs. Halcyon Technology Public
Performance |
| Timeline |
| Praram 9 Hospital |
| Halcyon Technology Public |
Praram 9 and Halcyon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praram 9 and Halcyon Technology
The main advantage of trading using opposite Praram 9 and Halcyon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praram 9 position performs unexpectedly, Halcyon Technology 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 Halcyon Technology will offset losses from the drop in Halcyon Technology's long position.| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital Public | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital Public |
| Halcyon Technology vs. Gulf Energy Development | Halcyon Technology vs. Energy Absolute Public | Halcyon Technology vs. WHA Public | Halcyon Technology vs. Bangkok Expressway and |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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