Correlation Between Praram 9 and Mena Transport
Can any of the company-specific risk be diversified away by investing in both Praram 9 and Mena Transport 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 Mena Transport 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 Mena Transport Public, you can compare the effects of market volatilities on Praram 9 and Mena Transport 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 Mena Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praram 9 and Mena Transport.
Diversification Opportunities for Praram 9 and Mena Transport
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Praram and Mena is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Praram 9 Hospital and Mena Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mena Transport 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 Mena Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mena Transport Public has no effect on the direction of Praram 9 i.e., Praram 9 and Mena Transport go up and down completely randomly.
Pair Corralation between Praram 9 and Mena Transport
Assuming the 90 days trading horizon Praram 9 Hospital is expected to generate 0.59 times more return on investment than Mena Transport. However, Praram 9 Hospital is 1.71 times less risky than Mena Transport. It trades about 0.06 of its potential returns per unit of risk. Mena Transport Public is currently generating about 0.01 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praram 9 Hospital vs. Mena Transport Public
Performance |
| Timeline |
| Praram 9 Hospital |
| Mena Transport Public |
Praram 9 and Mena Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praram 9 and Mena Transport
The main advantage of trading using opposite Praram 9 and Mena Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praram 9 position performs unexpectedly, Mena Transport 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 Mena Transport will offset losses from the drop in Mena Transport'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 |
| Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Karmarts Public | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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