Correlation Between Ratchthani Leasing and Thanachart Capital
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and Thanachart Capital 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 Thanachart Capital 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 Thanachart Capital Public, you can compare the effects of market volatilities on Ratchthani Leasing and Thanachart Capital 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 Thanachart Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and Thanachart Capital.
Diversification Opportunities for Ratchthani Leasing and Thanachart Capital
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ratchthani and Thanachart is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and Thanachart Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanachart Capital 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 Thanachart Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanachart Capital Public has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and Thanachart Capital go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and Thanachart Capital
Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to under-perform the Thanachart Capital. In addition to that, Ratchthani Leasing is 2.36 times more volatile than Thanachart Capital Public. It trades about -0.58 of its total potential returns per unit of risk. Thanachart Capital Public is currently generating about 0.07 per unit of volatility. If you would invest 4,925 in Thanachart Capital Public on October 23, 2024 and sell it today you would earn a total of 50.00 from holding Thanachart Capital Public or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchthani Leasing Public vs. Thanachart Capital Public
Performance |
| Timeline |
| Ratchthani Leasing Public |
| Thanachart Capital Public |
Ratchthani Leasing and Thanachart Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchthani Leasing and Thanachart Capital
The main advantage of trading using opposite Ratchthani Leasing and Thanachart Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, Thanachart Capital 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 Thanachart Capital will offset losses from the drop in Thanachart Capital'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 |
| Thanachart Capital vs. TISCO Financial Group | Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. SCB X Public | Thanachart Capital vs. Kasikornbank 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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