Correlation Between Somboon Advance and Ally Leasehold
Can any of the company-specific risk be diversified away by investing in both Somboon Advance and Ally Leasehold 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 Somboon Advance and Ally Leasehold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Somboon Advance Technology and Ally Leasehold Real, you can compare the effects of market volatilities on Somboon Advance and Ally Leasehold 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 Somboon Advance with a short position of Ally Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Somboon Advance and Ally Leasehold.
Diversification Opportunities for Somboon Advance and Ally Leasehold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Somboon and Ally is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Somboon Advance Technology and Ally Leasehold Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Leasehold Real and Somboon Advance 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 Somboon Advance Technology are associated (or correlated) with Ally Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Leasehold Real has no effect on the direction of Somboon Advance i.e., Somboon Advance and Ally Leasehold go up and down completely randomly.
Pair Corralation between Somboon Advance and Ally Leasehold
Assuming the 90 days trading horizon Somboon Advance Technology is expected to under-perform the Ally Leasehold. In addition to that, Somboon Advance is 1.33 times more volatile than Ally Leasehold Real. It trades about -0.14 of its total potential returns per unit of risk. Ally Leasehold Real is currently generating about 0.08 per unit of volatility. If you would invest 525.00 in Ally Leasehold Real on October 7, 2024 and sell it today you would earn a total of 10.00 from holding Ally Leasehold Real or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Somboon Advance Technology vs. Ally Leasehold Real
Performance |
| Timeline |
| Somboon Advance Tech |
| Ally Leasehold Real |
Somboon Advance and Ally Leasehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Somboon Advance and Ally Leasehold
The main advantage of trading using opposite Somboon Advance and Ally Leasehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Somboon Advance position performs unexpectedly, Ally Leasehold 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 Ally Leasehold will offset losses from the drop in Ally Leasehold's long position.| Somboon Advance vs. AAPICO Hitech Public | Somboon Advance vs. Thai Stanley Electric | Somboon Advance vs. Hana Microelectronics Public | Somboon Advance vs. TISCO Financial Group |
| Ally Leasehold vs. AIM Industrial Growth | Ally Leasehold vs. Dusit Thani Freehold | Ally Leasehold vs. CPN Retail Growth | Ally Leasehold vs. Amata Summit Growth |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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