Correlation Between Ngern Tid and Ratchthani Leasing
Can any of the company-specific risk be diversified away by investing in both Ngern Tid and Ratchthani Leasing 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 Ngern Tid and Ratchthani Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ngern Tid Lor and Ratchthani Leasing Public, you can compare the effects of market volatilities on Ngern Tid and Ratchthani Leasing 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 Ngern Tid with a short position of Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ngern Tid and Ratchthani Leasing.
Diversification Opportunities for Ngern Tid and Ratchthani Leasing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ngern and Ratchthani is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ngern Tid Lor and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani Leasing Public and Ngern Tid 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 Ngern Tid Lor are associated (or correlated) with Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of Ngern Tid i.e., Ngern Tid and Ratchthani Leasing go up and down completely randomly.
Pair Corralation between Ngern Tid and Ratchthani Leasing
Assuming the 90 days trading horizon Ngern Tid Lor is expected to generate 1.0 times more return on investment than Ratchthani Leasing. However, Ngern Tid Lor is 1.0 times less risky than Ratchthani Leasing. It trades about 0.05 of its potential returns per unit of risk. Ratchthani Leasing Public is currently generating about 0.05 per unit of risk. If you would invest 2,275 in Ngern Tid Lor on August 28, 2024 and sell it today you would lose (515.00) from holding Ngern Tid Lor or give up 22.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ngern Tid Lor vs. Ratchthani Leasing Public
Performance |
| Timeline |
| Ngern Tid Lor |
| Ratchthani Leasing Public |
Ngern Tid and Ratchthani Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ngern Tid and Ratchthani Leasing
The main advantage of trading using opposite Ngern Tid and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ngern Tid position performs unexpectedly, Ratchthani Leasing 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 Ratchthani Leasing will offset losses from the drop in Ratchthani Leasing's long position.| Ngern Tid vs. PTT Oil and | Ngern Tid vs. Kasikornbank Public | Ngern Tid vs. Srisawad Power 1979 | Ngern Tid vs. Muangthai Capital Public |
| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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