Correlation Between NAT ABSOLUTE and PINTHONG INDUSTRIAL

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

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

Diversification Opportunities for NAT ABSOLUTE and PINTHONG INDUSTRIAL

-0.13

Correlation Coefficient

NAT ABSOLUTE  PINTHONG INDUSTRIAL

Good diversification

The 3 months correlation between NAT and PINTHONG is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding NAT ABSOLUTE TECHNOLOGIES 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 NAT ABSOLUTE 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 NAT ABSOLUTE TECHNOLOGIES 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 NAT ABSOLUTE i.e., NAT ABSOLUTE and PINTHONG INDUSTRIAL go up and down completely randomly.

Pair Corralation between NAT ABSOLUTE and PINTHONG INDUSTRIAL

Assuming the 90 days trading horizon NAT ABSOLUTE TECHNOLOGIES is expected to under-perform the PINTHONG INDUSTRIAL. But the stock apears to be less risky and, when comparing its historical volatility, NAT ABSOLUTE TECHNOLOGIES is 1.63 times less risky than PINTHONG INDUSTRIAL. The stock trades about -0.08 of its potential returns per unit of risk. The PINTHONG INDUSTRIAL PARK is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  478.00  in PINTHONG INDUSTRIAL PARK on September 3, 2024 and sell it today you would earn a total of  152.00  from holding PINTHONG INDUSTRIAL PARK or generate 31.8% return on investment over 90 days.

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

NAT ABSOLUTE TECHNOLOGIES  vs.  PINTHONG INDUSTRIAL PARK

NAT ABSOLUTE TECHNOLOGIES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAT ABSOLUTE TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

PINTHONG INDUSTRIAL PARK

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PINTHONG INDUSTRIAL PARK are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, PINTHONG INDUSTRIAL disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NAT ABSOLUTE and PINTHONG INDUSTRIAL

The main advantage of trading using opposite NAT ABSOLUTE and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAT ABSOLUTE 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 NAT ABSOLUTE TECHNOLOGIES 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.