Correlation Between Nawarat Patanakarn and Seafco Public

Can any of the company-specific risk be diversified away by investing in both Nawarat Patanakarn and Seafco Public 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 Nawarat Patanakarn and Seafco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Nawarat Patanakarn and Seafco Public

0.36

Correlation Coefficient

Nawarat Patanakarn  Seafco Public

Weak diversification

The 3 months correlation between Nawarat and Seafco is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nawarat Patanakarn Public and Seafco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafco Public and Nawarat Patanakarn 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 Nawarat Patanakarn Public are associated (or correlated) with Seafco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafco Public has no effect on the direction of Nawarat Patanakarn i.e., Nawarat Patanakarn and Seafco Public go up and down completely randomly.

Pair Corralation between Nawarat Patanakarn and Seafco Public

Assuming the 90 days trading horizon Nawarat Patanakarn Public is expected to under-perform the Seafco Public. In addition to that, Nawarat Patanakarn is 3.31 times more volatile than Seafco Public. It trades about -0.08 of its total potential returns per unit of risk. Seafco Public is currently generating about 0.0 per unit of volatility. If you would invest  200.00  in Seafco Public on December 29, 2024 and sell it today you would lose (2.00) from holding Seafco Public or give up 1.0% of portfolio value over 90 days.

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

Nawarat Patanakarn Public  vs.  Seafco Public

Nawarat Patanakarn Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nawarat Patanakarn 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 basic indicators 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.

Seafco Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seafco Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Seafco Public is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nawarat Patanakarn and Seafco Public

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

The idea behind Nawarat Patanakarn Public and Seafco 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.