Correlation Between Stock Exchange and Lanna Resources
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Lanna Resources 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 Stock Exchange and Lanna Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Lanna Resources Public, you can compare the effects of market volatilities on Stock Exchange and Lanna Resources 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 Stock Exchange with a short position of Lanna Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Lanna Resources.
Diversification Opportunities for Stock Exchange and Lanna Resources
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stock and Lanna is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Lanna Resources Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanna Resources Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Lanna Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanna Resources Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Lanna Resources go up and down completely randomly.
Pair Corralation between Stock Exchange and Lanna Resources
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Lanna Resources. In addition to that, Stock Exchange is 1.01 times more volatile than Lanna Resources Public. It trades about -0.19 of its total potential returns per unit of risk. Lanna Resources Public is currently generating about -0.04 per unit of volatility. If you would invest 1,610 in Lanna Resources Public on September 2, 2024 and sell it today you would lose (10.00) from holding Lanna Resources Public or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Lanna Resources Public
Performance |
| Timeline |
Stock Exchange and Lanna Resources Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Lanna Resources Public
Pair trading matchups for Lanna Resources
Pair Trading with Stock Exchange and Lanna Resources
The main advantage of trading using opposite Stock Exchange and Lanna Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Lanna Resources 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 Lanna Resources will offset losses from the drop in Lanna Resources' long position.| Stock Exchange vs. Central Retail | Stock Exchange vs. Interlink Communication Public | Stock Exchange vs. NSL Foods Public | Stock Exchange vs. Central Plaza Hotel |
| Lanna Resources vs. Sawang Export Public | Lanna Resources vs. Quality Houses Hotel | Lanna Resources vs. Grande Hospitality Real | Lanna Resources vs. City Steel 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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