Correlation Between ALL ENERGY and PINTHONG INDUSTRIAL

Can any of the company-specific risk be diversified away by investing in both ALL ENERGY and PINTHONG INDUSTRIAL 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 ALL ENERGY and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ALL ENERGY UTILITIES and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on ALL ENERGY and PINTHONG INDUSTRIAL 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 ALL ENERGY with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALL ENERGY and PINTHONG INDUSTRIAL.

Diversification Opportunities for ALL ENERGY and PINTHONG INDUSTRIAL

-0.59

Correlation Coefficient

ALL ENERGY  PINTHONG INDUSTRIAL

Excellent diversification

The 3 months correlation between ALL and PINTHONG is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ALL ENERGY UTILITIES and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and ALL ENERGY 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 ALL ENERGY UTILITIES are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of ALL ENERGY i.e., ALL ENERGY and PINTHONG INDUSTRIAL go up and down completely randomly.

Pair Corralation between ALL ENERGY and PINTHONG INDUSTRIAL

Assuming the 90 days horizon ALL ENERGY UTILITIES is expected to under-perform the PINTHONG INDUSTRIAL. In addition to that, ALL ENERGY is 1.6 times more volatile than PINTHONG INDUSTRIAL PARK. It trades about -0.06 of its total potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.07 per unit of volatility. If you would invest  630.00  in PINTHONG INDUSTRIAL PARK on November 29, 2024 and sell it today you would earn a total of  55.00  from holding PINTHONG INDUSTRIAL PARK or generate 8.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ALL ENERGY UTILITIES  vs.  PINTHONG INDUSTRIAL PARK

ALL ENERGY UTILITIES

Risk-Adjusted Performance

Very Weak

Over the last 90 days ALL ENERGY UTILITIES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

PINTHONG INDUSTRIAL PARK

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PINTHONG INDUSTRIAL PARK are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, PINTHONG INDUSTRIAL may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with ALL ENERGY and PINTHONG INDUSTRIAL

The main advantage of trading using opposite ALL ENERGY and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALL ENERGY position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.

The idea behind ALL ENERGY UTILITIES and PINTHONG INDUSTRIAL PARK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.