Correlation Between Turnkey Communication and Phatra Leasing

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

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

Diversification Opportunities for Turnkey Communication and Phatra Leasing

0.21

Correlation Coefficient

Turnkey Communication  Phatra Leasing

Modest diversification

The 3 months correlation between Turnkey and Phatra is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Turnkey Communication Services and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing Public and Turnkey Communication 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 Turnkey Communication Services are associated (or correlated) with Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of Turnkey Communication i.e., Turnkey Communication and Phatra Leasing go up and down completely randomly.

Pair Corralation between Turnkey Communication and Phatra Leasing

Assuming the 90 days trading horizon Turnkey Communication Services is expected to generate 0.85 times more return on investment than Phatra Leasing. However, Turnkey Communication Services is 1.18 times less risky than Phatra Leasing. It trades about 0.14 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about 0.09 per unit of risk. If you would invest  764.00  in Turnkey Communication Services on April 25, 2025 and sell it today you would earn a total of  196.00  from holding Turnkey Communication Services or generate 25.65% return on investment over 90 days.

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

Turnkey Communication Services  vs.  Phatra Leasing Public

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 10 (%) 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.

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.

Pair Trading with Turnkey Communication and Phatra Leasing

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

The idea behind Turnkey Communication Services and Phatra Leasing 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.