Correlation Between ABSOLUTE CLEAN and Srinanaporn Marketing
Can any of the company-specific risk be diversified away by investing in both ABSOLUTE CLEAN and Srinanaporn Marketing 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 ABSOLUTE CLEAN and Srinanaporn Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABSOLUTE CLEAN ENERGY and Srinanaporn Marketing Public, you can compare the effects of market volatilities on ABSOLUTE CLEAN and Srinanaporn Marketing 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 ABSOLUTE CLEAN with a short position of Srinanaporn Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSOLUTE CLEAN and Srinanaporn Marketing.
Diversification Opportunities for ABSOLUTE CLEAN and Srinanaporn Marketing
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ABSOLUTE and Srinanaporn is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ABSOLUTE CLEAN ENERGY and Srinanaporn Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srinanaporn Marketing and ABSOLUTE CLEAN 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 ABSOLUTE CLEAN ENERGY are associated (or correlated) with Srinanaporn Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srinanaporn Marketing has no effect on the direction of ABSOLUTE CLEAN i.e., ABSOLUTE CLEAN and Srinanaporn Marketing go up and down completely randomly.
Pair Corralation between ABSOLUTE CLEAN and Srinanaporn Marketing
Assuming the 90 days trading horizon ABSOLUTE CLEAN ENERGY is expected to generate 1.08 times more return on investment than Srinanaporn Marketing. However, ABSOLUTE CLEAN is 1.08 times more volatile than Srinanaporn Marketing Public. It trades about -0.08 of its potential returns per unit of risk. Srinanaporn Marketing Public is currently generating about -0.09 per unit of risk. If you would invest 188.00 in ABSOLUTE CLEAN ENERGY on August 25, 2024 and sell it today you would lose (59.00) from holding ABSOLUTE CLEAN ENERGY or give up 31.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
ABSOLUTE CLEAN ENERGY vs. Srinanaporn Marketing Public
Performance |
| Timeline |
| ABSOLUTE CLEAN ENERGY |
| Srinanaporn Marketing |
ABSOLUTE CLEAN and Srinanaporn Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSOLUTE CLEAN and Srinanaporn Marketing
The main advantage of trading using opposite ABSOLUTE CLEAN and Srinanaporn Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSOLUTE CLEAN position performs unexpectedly, Srinanaporn Marketing 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 Srinanaporn Marketing will offset losses from the drop in Srinanaporn Marketing's long position.| ABSOLUTE CLEAN vs. BCPG Public | ABSOLUTE CLEAN vs. CK Power Public | ABSOLUTE CLEAN vs. TPI Polene Power | ABSOLUTE CLEAN vs. Earth Tech Environment |
| Srinanaporn Marketing vs. Sappe Public | Srinanaporn Marketing vs. Osotspa Public | Srinanaporn Marketing vs. RB Food Supply | Srinanaporn Marketing vs. Sabuy 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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