Correlation Between Rojana Industrial and PINTHONG INDUSTRIAL

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

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

Diversification Opportunities for Rojana Industrial and PINTHONG INDUSTRIAL

-0.3

Correlation Coefficient

Rojana Industrial  PINTHONG INDUSTRIAL

Very good diversification

The 3 months correlation between Rojana and PINTHONG is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park 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 Rojana Industrial 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 Rojana Industrial Park 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 Rojana Industrial i.e., Rojana Industrial and PINTHONG INDUSTRIAL go up and down completely randomly.

Pair Corralation between Rojana Industrial and PINTHONG INDUSTRIAL

Assuming the 90 days trading horizon Rojana Industrial is expected to generate 6.07 times less return on investment than PINTHONG INDUSTRIAL. But when comparing it to its historical volatility, Rojana Industrial Park is 1.28 times less risky than PINTHONG INDUSTRIAL. It trades about 0.01 of its potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  313.00  in PINTHONG INDUSTRIAL PARK on October 11, 2024 and sell it today you would earn a total of  292.00  from holding PINTHONG INDUSTRIAL PARK or generate 93.29% return on investment over 90 days.

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

Rojana Industrial Park  vs.  PINTHONG INDUSTRIAL PARK

Rojana Industrial Park

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rojana Industrial Park 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 somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

PINTHONG INDUSTRIAL PARK

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PINTHONG INDUSTRIAL PARK are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, PINTHONG INDUSTRIAL may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Rojana Industrial and PINTHONG INDUSTRIAL

The main advantage of trading using opposite Rojana Industrial and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial 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 Rojana Industrial Park 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.