Correlation Between Phatra Leasing and Turnkey Communication

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

By analyzing existing cross correlation between Phatra Leasing Public and Turnkey Communication Services, you can compare the effects of market volatilities on Phatra Leasing and Turnkey Communication 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 Phatra Leasing with a short position of Turnkey Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and Turnkey Communication.

Diversification Opportunities for Phatra Leasing and Turnkey Communication

0.26

Correlation Coefficient

Phatra Leasing  Turnkey Communication

Modest diversification

The 3 months correlation between Phatra and Turnkey is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and Turnkey Communication Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turnkey Communication and Phatra Leasing 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 Phatra Leasing Public are associated (or correlated) with Turnkey Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turnkey Communication has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and Turnkey Communication go up and down completely randomly.

Pair Corralation between Phatra Leasing and Turnkey Communication

Assuming the 90 days horizon Phatra Leasing is expected to generate 1.63 times less return on investment than Turnkey Communication. In addition to that, Phatra Leasing is 1.14 times more volatile than Turnkey Communication Services. It trades about 0.09 of its total potential returns per unit of risk. Turnkey Communication Services is currently generating about 0.16 per unit of volatility. If you would invest  749.00  in Turnkey Communication Services on April 23, 2025 and sell it today you would earn a total of  251.00  from holding Turnkey Communication Services or generate 33.51% return on investment over 90 days.

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

Phatra Leasing Public  vs.  Turnkey Communication Services

Phatra Leasing Public

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Phatra Leasing Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, Phatra Leasing disclosed solid returns over the last few months and may actually be approaching a breakup point.

Turnkey Communication

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turnkey Communication Services are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Turnkey Communication disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phatra Leasing and Turnkey Communication

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

The idea behind Phatra Leasing Public and Turnkey Communication Services 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.