Correlation Between Yong Concrete and Praram 9
Can any of the company-specific risk be diversified away by investing in both Yong Concrete and Praram 9 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 Yong Concrete and Praram 9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yong Concrete PCL and Praram 9 Hospital, you can compare the effects of market volatilities on Yong Concrete and Praram 9 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 Yong Concrete with a short position of Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yong Concrete and Praram 9.
Diversification Opportunities for Yong Concrete and Praram 9
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yong and Praram is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Yong Concrete PCL and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital and Yong Concrete 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 Yong Concrete PCL are associated (or correlated) with Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Yong Concrete i.e., Yong Concrete and Praram 9 go up and down completely randomly.
Pair Corralation between Yong Concrete and Praram 9
Assuming the 90 days trading horizon Yong Concrete PCL is expected to generate 0.66 times more return on investment than Praram 9. However, Yong Concrete PCL is 1.51 times less risky than Praram 9. It trades about 0.01 of its potential returns per unit of risk. Praram 9 Hospital is currently generating about -0.03 per unit of risk. If you would invest 103.00 in Yong Concrete PCL on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Yong Concrete PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yong Concrete PCL vs. Praram 9 Hospital
Performance |
| Timeline |
| Yong Concrete PCL |
| Praram 9 Hospital |
Yong Concrete and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yong Concrete and Praram 9
The main advantage of trading using opposite Yong Concrete and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yong Concrete position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's long position.| Yong Concrete vs. Exotic Food Public | Yong Concrete vs. Knight Club Capital | Yong Concrete vs. North East Rubbers | Yong Concrete vs. Yggdrazil Group Public |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital PCL | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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