Correlation Between Ngern Tid and Heng Leasing

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

Diversification Opportunities for Ngern Tid and Heng Leasing

-0.46

Correlation Coefficient

Ngern Tid  Heng Leasing

Very good diversification

The 3 months correlation between Ngern and Heng is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ngern Tid Lor and Heng Leasing Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heng Leasing Capital 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 Heng Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heng Leasing Capital has no effect on the direction of Ngern Tid i.e., Ngern Tid and Heng Leasing go up and down completely randomly.

Pair Corralation between Ngern Tid and Heng Leasing

Assuming the 90 days trading horizon Ngern Tid Lor is expected to generate 1.47 times more return on investment than Heng Leasing. However, Ngern Tid is 1.47 times more volatile than Heng Leasing Capital. It trades about 0.01 of its potential returns per unit of risk. Heng Leasing Capital is currently generating about -0.06 per unit of risk. If you would invest  1,965  in Ngern Tid Lor on April 16, 2025 and sell it today you would lose (365.00) from holding Ngern Tid Lor or give up 18.58% of portfolio value over 90 days.

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

Ngern Tid Lor  vs.  Heng Leasing Capital

Ngern Tid Lor

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ngern Tid Lor are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, Ngern Tid sustained solid returns over the last few months and may actually be approaching a breakup point.

Heng Leasing Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heng Leasing Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Ngern Tid and Heng Leasing

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

The idea behind Ngern Tid Lor and Heng Leasing Capital 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.