Correlation Between Phatra Leasing and Vintcom Technology

Can any of the company-specific risk be diversified away by investing in both Phatra Leasing and Vintcom Technology 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 Vintcom Technology 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 Vintcom Technology PCL, you can compare the effects of market volatilities on Phatra Leasing and Vintcom Technology 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 Vintcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and Vintcom Technology.

Diversification Opportunities for Phatra Leasing and Vintcom Technology

0.42

Correlation Coefficient

Phatra Leasing  Vintcom Technology

Very weak diversification

The 3 months correlation between Phatra and Vintcom is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and Vintcom Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vintcom Technology PCL 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 Vintcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vintcom Technology PCL has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and Vintcom Technology go up and down completely randomly.

Pair Corralation between Phatra Leasing and Vintcom Technology

Assuming the 90 days horizon Phatra Leasing Public is expected to generate 1.42 times more return on investment than Vintcom Technology. However, Phatra Leasing is 1.42 times more volatile than Vintcom Technology PCL. It trades about 0.09 of its potential returns per unit of risk. Vintcom Technology PCL is currently generating about 0.11 per unit of risk. If you would invest  106.00  in Phatra Leasing Public on April 25, 2025 and sell it today you would earn a total of  18.00  from holding Phatra Leasing Public or generate 16.98% return on investment over 90 days.

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

Phatra Leasing Public  vs.  Vintcom Technology PCL

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.

Vintcom Technology PCL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vintcom Technology PCL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Vintcom Technology disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phatra Leasing and Vintcom Technology

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

The idea behind Phatra Leasing Public and Vintcom Technology PCL 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.