Correlation Between Phatra Leasing and Ally Leasehold

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

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

Diversification Opportunities for Phatra Leasing and Ally Leasehold

-0.22

Correlation Coefficient

Phatra Leasing  Ally Leasehold

Very good diversification

The 3 months correlation between Phatra and Ally is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and Ally Leasehold Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Leasehold Real and Phatra Leasing 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 Phatra Leasing Public are associated (or correlated) with Ally Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Leasehold Real has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and Ally Leasehold go up and down completely randomly.

Pair Corralation between Phatra Leasing and Ally Leasehold

Assuming the 90 days horizon Phatra Leasing Public is expected to generate 42.89 times more return on investment than Ally Leasehold. However, Phatra Leasing is 42.89 times more volatile than Ally Leasehold Real. It trades about 0.06 of its potential returns per unit of risk. Ally Leasehold Real is currently generating about -0.01 per unit of risk. If you would invest  204.00  in Phatra Leasing Public on September 13, 2024 and sell it today you would lose (44.00) from holding Phatra Leasing Public or give up 21.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.58%
Values	Daily Returns

Phatra Leasing Public  vs.  Ally Leasehold Real

Phatra Leasing Public

Risk-Adjusted Performance

0 of 100

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 January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ally Leasehold Real

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ally Leasehold Real are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Ally Leasehold disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phatra Leasing and Ally Leasehold

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

The idea behind Phatra Leasing Public and Ally Leasehold Real 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.