Correlation Between Phatra Leasing and Patrangsit Healthcare

Can any of the company-specific risk be diversified away by investing in both Phatra Leasing and Patrangsit Healthcare 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 Patrangsit Healthcare 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 Patrangsit Healthcare Group, you can compare the effects of market volatilities on Phatra Leasing and Patrangsit Healthcare 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 Patrangsit Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and Patrangsit Healthcare.

Diversification Opportunities for Phatra Leasing and Patrangsit Healthcare

0.7

Correlation Coefficient

Phatra Leasing  Patrangsit Healthcare

Poor diversification

The 3 months correlation between Phatra and Patrangsit is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and Patrangsit Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patrangsit Healthcare 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 Patrangsit Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patrangsit Healthcare has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and Patrangsit Healthcare go up and down completely randomly.

Pair Corralation between Phatra Leasing and Patrangsit Healthcare

Assuming the 90 days horizon Phatra Leasing Public is expected to under-perform the Patrangsit Healthcare. In addition to that, Phatra Leasing is 2.28 times more volatile than Patrangsit Healthcare Group. It trades about -0.18 of its total potential returns per unit of risk. Patrangsit Healthcare Group is currently generating about -0.13 per unit of volatility. If you would invest  1,550  in Patrangsit Healthcare Group on December 30, 2024 and sell it today you would lose (170.00) from holding Patrangsit Healthcare Group or give up 10.97% of portfolio value over 90 days.

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

Phatra Leasing Public  vs.  Patrangsit Healthcare Group

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.

Patrangsit Healthcare

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Phatra Leasing and Patrangsit Healthcare

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

The idea behind Phatra Leasing Public and Patrangsit Healthcare Group 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.