Correlation Between Ratchthani Leasing and Seafco Public
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and Seafco Public 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 Ratchthani Leasing and Seafco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ratchthani Leasing Public and Seafco Public, you can compare the effects of market volatilities on Ratchthani Leasing and Seafco Public 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 Ratchthani Leasing with a short position of Seafco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and Seafco Public.
Diversification Opportunities for Ratchthani Leasing and Seafco Public
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ratchthani and Seafco is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and Seafco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafco Public and Ratchthani Leasing 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 Ratchthani Leasing Public are associated (or correlated) with Seafco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafco Public has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and Seafco Public go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and Seafco Public
Assuming the 90 days trading horizon Ratchthani Leasing is expected to generate 1.02 times less return on investment than Seafco Public. In addition to that, Ratchthani Leasing is 1.0 times more volatile than Seafco Public. It trades about 0.08 of its total potential returns per unit of risk. Seafco Public is currently generating about 0.08 per unit of volatility. If you would invest 234.00 in Seafco Public on August 29, 2024 and sell it today you would lose (37.00) from holding Seafco Public or give up 15.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchthani Leasing Public vs. Seafco Public
Performance |
| Timeline |
| Ratchthani Leasing Public |
| Seafco Public |
Ratchthani Leasing and Seafco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchthani Leasing and Seafco Public
The main advantage of trading using opposite Ratchthani Leasing and Seafco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, Seafco Public 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 Seafco Public will offset losses from the drop in Seafco Public's long position.| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
| Seafco Public vs. Pylon Public | Seafco Public vs. CH Karnchang Public | Seafco Public vs. Siri Prime Office | Seafco Public vs. Ratchthani Leasing 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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