Correlation Between Ngern Tid and XSpring Capital

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

By analyzing existing cross correlation between Ngern Tid Lor and XSpring Capital Public, you can compare the effects of market volatilities on Ngern Tid and XSpring Capital 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 Ngern Tid with a short position of XSpring Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ngern Tid and XSpring Capital.

Diversification Opportunities for Ngern Tid and XSpring Capital

0.56

Correlation Coefficient

Ngern Tid  XSpring Capital

Very weak diversification

The 3 months correlation between Ngern and XSpring is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ngern Tid Lor and XSpring Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpring Capital Public and Ngern Tid 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 Ngern Tid Lor are associated (or correlated) with XSpring Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpring Capital Public has no effect on the direction of Ngern Tid i.e., Ngern Tid and XSpring Capital go up and down completely randomly.

Pair Corralation between Ngern Tid and XSpring Capital

Assuming the 90 days trading horizon Ngern Tid Lor is expected to under-perform the XSpring Capital. In addition to that, Ngern Tid is 1.14 times more volatile than XSpring Capital Public. It trades about -0.13 of its total potential returns per unit of risk. XSpring Capital Public is currently generating about -0.03 per unit of volatility. If you would invest  91.00  in XSpring Capital Public on September 15, 2024 and sell it today you would lose (1.00) from holding XSpring Capital Public or give up 1.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Ngern Tid Lor  vs.  XSpring Capital Public

Ngern Tid Lor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ngern Tid Lor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

XSpring Capital Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XSpring Capital 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 technical and fundamental indicators 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.

Pair Trading with Ngern Tid and XSpring Capital

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

The idea behind Ngern Tid Lor and XSpring Capital 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.

Check out your portfolio center.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.