Correlation Between Premier Technology and Phol Dhanya
Can any of the company-specific risk be diversified away by investing in both Premier Technology and Phol Dhanya 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 Premier Technology and Phol Dhanya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Technology Public and Phol Dhanya Public, you can compare the effects of market volatilities on Premier Technology and Phol Dhanya 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 Premier Technology with a short position of Phol Dhanya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Technology and Phol Dhanya.
Diversification Opportunities for Premier Technology and Phol Dhanya
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Premier and Phol is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Premier Technology Public and Phol Dhanya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phol Dhanya Public and Premier Technology 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 Premier Technology Public are associated (or correlated) with Phol Dhanya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phol Dhanya Public has no effect on the direction of Premier Technology i.e., Premier Technology and Phol Dhanya go up and down completely randomly.
Pair Corralation between Premier Technology and Phol Dhanya
Assuming the 90 days horizon Premier Technology Public is expected to generate 0.65 times more return on investment than Phol Dhanya. However, Premier Technology Public is 1.53 times less risky than Phol Dhanya. It trades about 0.02 of its potential returns per unit of risk. Phol Dhanya Public is currently generating about -0.17 per unit of risk. If you would invest 975.00 in Premier Technology Public on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Premier Technology Public or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Technology Public vs. Phol Dhanya Public
Performance |
| Timeline |
| Premier Technology Public |
| Phol Dhanya Public |
Premier Technology and Phol Dhanya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Technology and Phol Dhanya
The main advantage of trading using opposite Premier Technology and Phol Dhanya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Technology position performs unexpectedly, Phol Dhanya 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 Phol Dhanya will offset losses from the drop in Phol Dhanya's long position.| Premier Technology vs. AP Public | Premier Technology vs. Jasmine International Public | Premier Technology vs. Asia Plus Group | Premier Technology vs. Bangkok Aviation Fuel |
| Phol Dhanya vs. Lalin Property Public | Phol Dhanya vs. Premier Technology Public | Phol Dhanya vs. Noble Development Public | Phol Dhanya vs. MCS Steel 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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