Correlation Between Saha Pathanapibul and Saha Pathana

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

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

Diversification Opportunities for Saha Pathanapibul and Saha Pathana

0.0

Correlation Coefficient

Saha Pathanapibul  Saha Pathana

Pay attention - limited upside

The 3 months correlation between Saha and Saha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saha Pathanapibul Public and Saha Pathana Inter Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saha Pathana Inter and Saha Pathanapibul 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 Saha Pathanapibul Public are associated (or correlated) with Saha Pathana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saha Pathana Inter has no effect on the direction of Saha Pathanapibul i.e., Saha Pathanapibul and Saha Pathana go up and down completely randomly.

Pair Corralation between Saha Pathanapibul and Saha Pathana

Assuming the 90 days trading horizon Saha Pathanapibul Public is expected to generate 0.5 times more return on investment than Saha Pathana. However, Saha Pathanapibul Public is 1.98 times less risky than Saha Pathana. It trades about 0.01 of its potential returns per unit of risk. Saha Pathana Inter Holding is currently generating about -0.02 per unit of risk. If you would invest  5,875  in Saha Pathanapibul Public on December 28, 2024 and sell it today you would earn a total of  25.00  from holding Saha Pathanapibul Public or generate 0.43% return on investment over 90 days.

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

Saha Pathanapibul Public  vs.  Saha Pathana Inter Holding

Saha Pathanapibul Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Saha Pathanapibul Public are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Saha Pathanapibul is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Saha Pathana Inter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Saha Pathana Inter Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, Saha Pathana is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Saha Pathanapibul and Saha Pathana

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

The idea behind Saha Pathanapibul Public and Saha Pathana Inter Holding 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.