Correlation Between 3BB INTERNET and CHAOSUA FOODS
Can any of the company-specific risk be diversified away by investing in both 3BB INTERNET and CHAOSUA FOODS 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 3BB INTERNET and CHAOSUA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3BB INTERNET INFRASTRUCTURE and CHAOSUA FOODS INDUSTRY, you can compare the effects of market volatilities on 3BB INTERNET and CHAOSUA FOODS 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 3BB INTERNET with a short position of CHAOSUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3BB INTERNET and CHAOSUA FOODS.
Diversification Opportunities for 3BB INTERNET and CHAOSUA FOODS
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 3BB and CHAOSUA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding 3BB INTERNET INFRASTRUCTURE and CHAOSUA FOODS INDUSTRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAOSUA FOODS INDUSTRY and 3BB INTERNET 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 3BB INTERNET INFRASTRUCTURE are associated (or correlated) with CHAOSUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAOSUA FOODS INDUSTRY has no effect on the direction of 3BB INTERNET i.e., 3BB INTERNET and CHAOSUA FOODS go up and down completely randomly.
Pair Corralation between 3BB INTERNET and CHAOSUA FOODS
Assuming the 90 days trading horizon 3BB INTERNET INFRASTRUCTURE is expected to generate 0.34 times more return on investment than CHAOSUA FOODS. However, 3BB INTERNET INFRASTRUCTURE is 2.92 times less risky than CHAOSUA FOODS. It trades about -0.39 of its potential returns per unit of risk. CHAOSUA FOODS INDUSTRY is currently generating about -0.36 per unit of risk. If you would invest 604.00 in 3BB INTERNET INFRASTRUCTURE on August 28, 2024 and sell it today you would lose (49.00) from holding 3BB INTERNET INFRASTRUCTURE or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
3BB INTERNET INFRASTRUCTURE vs. CHAOSUA FOODS INDUSTRY
Performance |
| Timeline |
| 3BB INTERNET INFRAST |
| CHAOSUA FOODS INDUSTRY |
3BB INTERNET and CHAOSUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3BB INTERNET and CHAOSUA FOODS
The main advantage of trading using opposite 3BB INTERNET and CHAOSUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3BB INTERNET position performs unexpectedly, CHAOSUA FOODS 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 CHAOSUA FOODS will offset losses from the drop in CHAOSUA FOODS's long position.| 3BB INTERNET vs. Kiatnakin Phatra Bank | 3BB INTERNET vs. CENTRAL RETAIL P | 3BB INTERNET vs. Digital Telecommunications Infrastructure | 3BB INTERNET vs. Thai Rubber Latex |
| CHAOSUA FOODS vs. Bualuang Office Leasehold | CHAOSUA FOODS vs. PMC LABEL MATERIALS | CHAOSUA FOODS vs. Exotic Food Public | CHAOSUA FOODS vs. BPS TECHNOLOGY PUBLIC |
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.
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