Correlation Between Srisawad Power and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and Micro 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 Srisawad Power and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and Micro Leasing Public, you can compare the effects of market volatilities on Srisawad Power and Micro 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 Srisawad Power with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and Micro Leasing.
Diversification Opportunities for Srisawad Power and Micro Leasing
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Srisawad and Micro is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing Public and Srisawad Power 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 Srisawad Power 1979 are associated (or correlated) with Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Srisawad Power i.e., Srisawad Power and Micro Leasing go up and down completely randomly.
Pair Corralation between Srisawad Power and Micro Leasing
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to generate 13.85 times more return on investment than Micro Leasing. However, Srisawad Power is 13.85 times more volatile than Micro Leasing Public. It trades about 0.04 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.07 per unit of risk. If you would invest 4,196 in Srisawad Power 1979 on September 13, 2024 and sell it today you would lose (271.00) from holding Srisawad Power 1979 or give up 6.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. Micro Leasing Public
Performance |
| Timeline |
| Srisawad Power 1979 |
| Micro Leasing Public |
Srisawad Power and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and Micro Leasing
The main advantage of trading using opposite Srisawad Power and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, Micro 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 Micro Leasing will offset losses from the drop in Micro Leasing's long position.| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International Public |
| Micro Leasing vs. Srisawad Power 1979 | Micro Leasing vs. Muangthai Capital Public | Micro Leasing vs. Krungthai Card PCL |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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