Correlation Between Ratchthani Leasing and Thai Mitsuwa
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and Thai Mitsuwa 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 Thai Mitsuwa 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 Thai Mitsuwa Public, you can compare the effects of market volatilities on Ratchthani Leasing and Thai Mitsuwa 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 Thai Mitsuwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and Thai Mitsuwa.
Diversification Opportunities for Ratchthani Leasing and Thai Mitsuwa
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ratchthani and Thai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and Thai Mitsuwa Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Mitsuwa 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 Thai Mitsuwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Mitsuwa Public has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and Thai Mitsuwa go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and Thai Mitsuwa
Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to under-perform the Thai Mitsuwa. In addition to that, Ratchthani Leasing is 2.18 times more volatile than Thai Mitsuwa Public. It trades about -0.2 of its total potential returns per unit of risk. Thai Mitsuwa Public is currently generating about -0.08 per unit of volatility. If you would invest 6,400 in Thai Mitsuwa Public on September 1, 2024 and sell it today you would lose (150.00) from holding Thai Mitsuwa Public or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchthani Leasing Public vs. Thai Mitsuwa Public
Performance |
| Timeline |
| Ratchthani Leasing Public |
| Thai Mitsuwa Public |
Ratchthani Leasing and Thai Mitsuwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchthani Leasing and Thai Mitsuwa
The main advantage of trading using opposite Ratchthani Leasing and Thai Mitsuwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, Thai Mitsuwa 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 Thai Mitsuwa will offset losses from the drop in Thai Mitsuwa'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 |
| Thai Mitsuwa vs. Sherwood Public | Thai Mitsuwa vs. Thanachart Capital Public | Thai Mitsuwa vs. T S Flour | Thai Mitsuwa vs. Ubis 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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