Correlation Between Quality Houses and Saha Pathana
Can any of the company-specific risk be diversified away by investing in both Quality Houses and Saha Pathana 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 Quality Houses and Saha Pathana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quality Houses Public and Saha Pathana Inter Holding, you can compare the effects of market volatilities on Quality Houses and Saha Pathana 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 Quality Houses with a short position of Saha Pathana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quality Houses and Saha Pathana.
Diversification Opportunities for Quality Houses and Saha Pathana
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quality and Saha is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Quality Houses Public and Saha Pathana Inter Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saha Pathana Inter and Quality Houses 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 Quality Houses Public are associated (or correlated) with Saha Pathana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saha Pathana Inter has no effect on the direction of Quality Houses i.e., Quality Houses and Saha Pathana go up and down completely randomly.
Pair Corralation between Quality Houses and Saha Pathana
Assuming the 90 days horizon Quality Houses Public is expected to under-perform the Saha Pathana. But the stock apears to be less risky and, when comparing its historical volatility, Quality Houses Public is 1.11 times less risky than Saha Pathana. The stock trades about -0.02 of its potential returns per unit of risk. The Saha Pathana Inter Holding is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,934 in Saha Pathana Inter Holding on September 2, 2024 and sell it today you would lose (784.00) from holding Saha Pathana Inter Holding or give up 11.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quality Houses Public vs. Saha Pathana Inter Holding
Performance |
| Timeline |
| Quality Houses Public |
| Saha Pathana Inter |
Quality Houses and Saha Pathana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quality Houses and Saha Pathana
The main advantage of trading using opposite Quality Houses and Saha Pathana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quality Houses position performs unexpectedly, Saha Pathana 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 Saha Pathana will offset losses from the drop in Saha Pathana's long position.| Quality Houses vs. Land and Houses | Quality Houses vs. AP Public | Quality Houses vs. Siri Prime Office | Quality Houses vs. PTT Public |
| Saha Pathana vs. Saha Pathanapibul Public | Saha Pathana vs. Quality Houses Public | Saha Pathana vs. ICC International Public | Saha Pathana vs. Surapon Foods 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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