Correlation Between PRG Public and AEON Thana
Can any of the company-specific risk be diversified away by investing in both PRG Public and AEON Thana 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 PRG Public and AEON Thana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PRG Public and AEON Thana Sinsap, you can compare the effects of market volatilities on PRG Public and AEON Thana 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 PRG Public with a short position of AEON Thana. Check out your portfolio center. Please also check ongoing floating volatility patterns of PRG Public and AEON Thana.
Diversification Opportunities for PRG Public and AEON Thana
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PRG and AEON is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding PRG Public and AEON Thana Sinsap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON Thana Sinsap and PRG Public 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 PRG Public are associated (or correlated) with AEON Thana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON Thana Sinsap has no effect on the direction of PRG Public i.e., PRG Public and AEON Thana go up and down completely randomly.
Pair Corralation between PRG Public and AEON Thana
Assuming the 90 days trading horizon PRG Public is expected to generate 0.59 times more return on investment than AEON Thana. However, PRG Public is 1.69 times less risky than AEON Thana. It trades about -0.07 of its potential returns per unit of risk. AEON Thana Sinsap is currently generating about -0.51 per unit of risk. If you would invest 905.00 in PRG Public on September 1, 2024 and sell it today you would lose (10.00) from holding PRG Public or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PRG Public vs. AEON Thana Sinsap
Performance |
| Timeline |
| PRG Public |
| AEON Thana Sinsap |
PRG Public and AEON Thana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PRG Public and AEON Thana
The main advantage of trading using opposite PRG Public and AEON Thana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PRG Public position performs unexpectedly, AEON Thana 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 AEON Thana will offset losses from the drop in AEON Thana's long position.| PRG Public vs. Surapon Foods Public | PRG Public vs. Peoples Garment Public | PRG Public vs. President Bakery Public | PRG Public vs. Sri Trang Agro Industry |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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