Correlation Between Srisawad Power and Ratchthani Leasing
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and Ratchthani 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 Ratchthani 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 Ratchthani Leasing Public, you can compare the effects of market volatilities on Srisawad Power and Ratchthani 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 Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and Ratchthani Leasing.
Diversification Opportunities for Srisawad Power and Ratchthani Leasing
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Srisawad and Ratchthani is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani 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 Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of Srisawad Power i.e., Srisawad Power and Ratchthani Leasing go up and down completely randomly.
Pair Corralation between Srisawad Power and Ratchthani Leasing
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to generate 1.0 times more return on investment than Ratchthani Leasing. However, Srisawad Power 1979 is 1.0 times less risky than Ratchthani Leasing. It trades about 0.08 of its potential returns per unit of risk. Ratchthani Leasing Public is currently generating about 0.08 per unit of risk. If you would invest 3,000 in Srisawad Power 1979 on November 3, 2024 and sell it today you would earn a total of 700.00 from holding Srisawad Power 1979 or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. Ratchthani Leasing Public
Performance |
| Timeline |
| Srisawad Power 1979 |
| Ratchthani Leasing Public |
Srisawad Power and Ratchthani Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and Ratchthani Leasing
The main advantage of trading using opposite Srisawad Power and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, Ratchthani 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 Ratchthani Leasing will offset losses from the drop in Ratchthani Leasing's long position.| Srisawad Power vs. Bank of Ayudhya | Srisawad Power vs. Thai Industrial | Srisawad Power vs. Thai Reinsurance Public | Srisawad Power vs. Amata Summit Growth |
| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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