Correlation Between Singha Estate and Raimon Land
Can any of the company-specific risk be diversified away by investing in both Singha Estate and Raimon Land 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 Singha Estate and Raimon Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singha Estate Public and Raimon Land Public, you can compare the effects of market volatilities on Singha Estate and Raimon Land 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 Singha Estate with a short position of Raimon Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singha Estate and Raimon Land.
Diversification Opportunities for Singha Estate and Raimon Land
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Singha and Raimon is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Singha Estate Public and Raimon Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raimon Land Public and Singha Estate 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 Singha Estate Public are associated (or correlated) with Raimon Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raimon Land Public has no effect on the direction of Singha Estate i.e., Singha Estate and Raimon Land go up and down completely randomly.
Pair Corralation between Singha Estate and Raimon Land
Given the investment horizon of 90 days Singha Estate Public is expected to generate 1.0 times more return on investment than Raimon Land. However, Singha Estate Public is 1.0 times less risky than Raimon Land. It trades about 0.06 of its potential returns per unit of risk. Raimon Land Public is currently generating about 0.06 per unit of risk. If you would invest 82.00 in Singha Estate Public on November 3, 2024 and sell it today you would lose (11.00) from holding Singha Estate Public or give up 13.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singha Estate Public vs. Raimon Land Public
Performance |
| Timeline |
| Singha Estate Public |
| Raimon Land Public |
Singha Estate and Raimon Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singha Estate and Raimon Land
The main advantage of trading using opposite Singha Estate and Raimon Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singha Estate position performs unexpectedly, Raimon Land 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 Raimon Land will offset losses from the drop in Raimon Land's long position.| Singha Estate vs. Land and Houses | Singha Estate vs. AP Public | Singha Estate vs. Quality Houses Public | Singha Estate vs. Central Pattana Public |
| Raimon Land vs. Land and Houses | Raimon Land vs. AP Public | Raimon Land vs. Quality Houses Public | Raimon Land vs. Central Pattana 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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