Correlation Between Praram 9 and Interlink Communication
Can any of the company-specific risk be diversified away by investing in both Praram 9 and Interlink Communication 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 Interlink Communication 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 Interlink Communication Public, you can compare the effects of market volatilities on Praram 9 and Interlink Communication 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 Interlink Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praram 9 and Interlink Communication.
Diversification Opportunities for Praram 9 and Interlink Communication
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Praram and Interlink is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Praram 9 Hospital and Interlink Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Communication 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 Interlink Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Communication has no effect on the direction of Praram 9 i.e., Praram 9 and Interlink Communication go up and down completely randomly.
Pair Corralation between Praram 9 and Interlink Communication
Assuming the 90 days trading horizon Praram 9 Hospital is expected to generate 1.08 times more return on investment than Interlink Communication. However, Praram 9 is 1.08 times more volatile than Interlink Communication Public. It trades about 0.06 of its potential returns per unit of risk. Interlink Communication Public is currently generating about 0.0 per unit of risk. If you would invest 1,619 in Praram 9 Hospital on September 2, 2024 and sell it today you would earn a total of 956.00 from holding Praram 9 Hospital or generate 59.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praram 9 Hospital vs. Interlink Communication Public
Performance |
| Timeline |
| Praram 9 Hospital |
| Interlink Communication |
Praram 9 and Interlink Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praram 9 and Interlink Communication
The main advantage of trading using opposite Praram 9 and Interlink Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praram 9 position performs unexpectedly, Interlink Communication 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 Interlink Communication will offset losses from the drop in Interlink Communication'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 |
| Interlink Communication vs. AP Public | Interlink Communication vs. Jasmine International Public | Interlink Communication vs. Asia Plus Group | Interlink Communication vs. Bangchak 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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