Correlation Between XSpring Capital and Ngern Tid

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

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

Diversification Opportunities for XSpring Capital and Ngern Tid

0.56

Correlation Coefficient

XSpring Capital  Ngern Tid

Very weak diversification

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

Pair Corralation between XSpring Capital and Ngern Tid

Assuming the 90 days trading horizon XSpring Capital Public is expected to under-perform the Ngern Tid. But the stock apears to be less risky and, when comparing its historical volatility, XSpring Capital Public is 30.49 times less risky than Ngern Tid. The stock trades about -0.02 of its potential returns per unit of risk. The Ngern Tid Lor is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,870  in Ngern Tid Lor on September 15, 2024 and sell it today you would lose (190.00) from holding Ngern Tid Lor or give up 10.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.19%
Values	Daily Returns

XSpring Capital Public  vs.  Ngern Tid Lor

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.

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.

Pair Trading with XSpring Capital and Ngern Tid

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

The idea behind XSpring Capital Public and Ngern Tid Lor 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.