Correlation Between Singha Estate and Raimon Land

Can any of the company-specific risk be diversified away by investing in both Singha Estate and Raimon Land 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 Singha Estate and Raimon Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Singha Estate and Raimon Land

0.95

Correlation Coefficient

Singha Estate  Raimon Land

Almost no diversification

The 3 months correlation between Singha and Raimon is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Singha Estate Public and Raimon Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raimon Land Public and Singha Estate 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 Singha Estate Public are associated (or correlated) with Raimon Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raimon Land Public has no effect on the direction of Singha Estate i.e., Singha Estate and Raimon Land go up and down completely randomly.

Pair Corralation between Singha Estate and Raimon Land

Given the investment horizon of 90 days Singha Estate is expected to generate 1.01 times less return on investment than Raimon Land. But when comparing it to its historical volatility, Singha Estate Public is 1.0 times less risky than Raimon Land. It trades about 0.13 of its potential returns per unit of risk. Raimon Land Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Raimon Land Public on September 3, 2024 and sell it today you would earn a total of  31.00  from holding Raimon Land Public or generate 9.223372036854776E16% return on investment over 90 days.

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

Singha Estate Public  vs.  Raimon Land Public

Singha Estate Public

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Singha Estate Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, Singha Estate disclosed solid returns over the last few months and may actually be approaching a breakup point.

Raimon Land Public

Risk-Adjusted Performance

10 of 100

OK

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

Pair Trading with Singha Estate and Raimon Land

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

The idea behind Singha Estate Public and Raimon Land 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.