Correlation Between Praram 9 and NAT ABSOLUTE
Can any of the company-specific risk be diversified away by investing in both Praram 9 and NAT ABSOLUTE 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 NAT ABSOLUTE 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 NAT ABSOLUTE TECHNOLOGIES, you can compare the effects of market volatilities on Praram 9 and NAT ABSOLUTE 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 NAT ABSOLUTE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praram 9 and NAT ABSOLUTE.
Diversification Opportunities for Praram 9 and NAT ABSOLUTE
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Praram and NAT is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Praram 9 Hospital and NAT ABSOLUTE TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAT ABSOLUTE TECHNOLOGIES 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 NAT ABSOLUTE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAT ABSOLUTE TECHNOLOGIES has no effect on the direction of Praram 9 i.e., Praram 9 and NAT ABSOLUTE go up and down completely randomly.
Pair Corralation between Praram 9 and NAT ABSOLUTE
Assuming the 90 days trading horizon Praram 9 Hospital is expected to generate 2.42 times more return on investment than NAT ABSOLUTE. However, Praram 9 is 2.42 times more volatile than NAT ABSOLUTE TECHNOLOGIES. It trades about 0.07 of its potential returns per unit of risk. NAT ABSOLUTE TECHNOLOGIES is currently generating about -0.47 per unit of risk. If you would invest 2,446 in Praram 9 Hospital on August 29, 2024 and sell it today you would earn a total of 79.00 from holding Praram 9 Hospital or generate 3.23% 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. NAT ABSOLUTE TECHNOLOGIES
Performance |
| Timeline |
| Praram 9 Hospital |
| NAT ABSOLUTE TECHNOLOGIES |
Praram 9 and NAT ABSOLUTE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praram 9 and NAT ABSOLUTE
The main advantage of trading using opposite Praram 9 and NAT ABSOLUTE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praram 9 position performs unexpectedly, NAT ABSOLUTE 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 NAT ABSOLUTE will offset losses from the drop in NAT ABSOLUTE's long position.| Praram 9 vs. Yong Concrete PCL | Praram 9 vs. Exotic Food Public | Praram 9 vs. SCG PACKAGING PCL NVDR | Praram 9 vs. CK Power Public |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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