Correlation Between Golden Ventures and Phatra Leasing

Can any of the company-specific risk be diversified away by investing in both Golden Ventures and Phatra 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 Golden Ventures and Phatra Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Golden Ventures Leasehold and Phatra Leasing Public, you can compare the effects of market volatilities on Golden Ventures and Phatra 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 Golden Ventures with a short position of Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and Phatra Leasing.

Diversification Opportunities for Golden Ventures and Phatra Leasing

-0.72

Correlation Coefficient

Golden Ventures  Phatra Leasing

Pay attention - limited upside

The 3 months correlation between Golden and Phatra is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures Leasehold and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing Public and Golden Ventures 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 Golden Ventures Leasehold are associated (or correlated) with Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of Golden Ventures i.e., Golden Ventures and Phatra Leasing go up and down completely randomly.

Pair Corralation between Golden Ventures and Phatra Leasing

Assuming the 90 days trading horizon Golden Ventures Leasehold is expected to generate 0.3 times more return on investment than Phatra Leasing. However, Golden Ventures Leasehold is 3.36 times less risky than Phatra Leasing. It trades about 0.08 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about -0.18 per unit of risk. If you would invest  630.00  in Golden Ventures Leasehold on December 30, 2024 and sell it today you would earn a total of  30.00  from holding Golden Ventures Leasehold or generate 4.76% return on investment over 90 days.

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

Golden Ventures Leasehold  vs.  Phatra Leasing Public

Golden Ventures Leasehold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Ventures Leasehold are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Golden Ventures is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Phatra Leasing Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phatra Leasing Public 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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Golden Ventures and Phatra Leasing

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

The idea behind Golden Ventures Leasehold and Phatra Leasing Public 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.