Correlation Between Ratchthani Leasing and Thaire Life
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and Thaire Life 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 Thaire Life 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 Thaire Life Assurance, you can compare the effects of market volatilities on Ratchthani Leasing and Thaire Life 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 Thaire Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and Thaire Life.
Diversification Opportunities for Ratchthani Leasing and Thaire Life
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ratchthani and Thaire is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and Thaire Life Assurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaire Life Assurance 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 Thaire Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaire Life Assurance has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and Thaire Life go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and Thaire Life
Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to under-perform the Thaire Life. In addition to that, Ratchthani Leasing is 2.23 times more volatile than Thaire Life Assurance. It trades about -0.27 of its total potential returns per unit of risk. Thaire Life Assurance is currently generating about -0.24 per unit of volatility. If you would invest 180.00 in Thaire Life Assurance on August 28, 2024 and sell it today you would lose (12.00) from holding Thaire Life Assurance or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ratchthani Leasing Public vs. Thaire Life Assurance
Performance |
| Timeline |
| Ratchthani Leasing Public |
| Thaire Life Assurance |
Ratchthani Leasing and Thaire Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchthani Leasing and Thaire Life
The main advantage of trading using opposite Ratchthani Leasing and Thaire Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, Thaire Life 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 Thaire Life will offset losses from the drop in Thaire Life'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 |
| Thaire Life vs. Thai Energy Storage | Thaire Life vs. Royal Orchid Hotel | Thaire Life vs. Grand Canal Land | Thaire Life vs. PRG 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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