Correlation Between PRG Public and Amanah Leasing
Can any of the company-specific risk be diversified away by investing in both PRG Public and Amanah Leasing 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 Amanah Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PRG Public and Amanah Leasing Public, you can compare the effects of market volatilities on PRG Public and Amanah Leasing 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 Amanah Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of PRG Public and Amanah Leasing.
Diversification Opportunities for PRG Public and Amanah Leasing
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PRG and Amanah is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PRG Public and Amanah Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanah Leasing Public 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 Amanah Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanah Leasing Public has no effect on the direction of PRG Public i.e., PRG Public and Amanah Leasing go up and down completely randomly.
Pair Corralation between PRG Public and Amanah Leasing
Assuming the 90 days trading horizon PRG Public is expected to generate 0.22 times more return on investment than Amanah Leasing. However, PRG Public is 4.61 times less risky than Amanah Leasing. It trades about -0.05 of its potential returns per unit of risk. Amanah Leasing Public is currently generating about -0.43 per unit of risk. If you would invest 900.00 in PRG Public on August 25, 2024 and sell it today you would lose (5.00) from holding PRG Public or give up 0.56% 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. Amanah Leasing Public
Performance |
| Timeline |
| PRG Public |
| Amanah Leasing Public |
PRG Public and Amanah Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PRG Public and Amanah Leasing
The main advantage of trading using opposite PRG Public and Amanah Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PRG Public position performs unexpectedly, Amanah Leasing 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 Amanah Leasing will offset losses from the drop in Amanah Leasing's long position.| PRG Public vs. CP ALL Public | PRG Public vs. Thai Union Group | PRG Public vs. Minor International Public | PRG Public vs. Central Pattana 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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