Correlation Between ALL ENERGY and Medeze Group
Can any of the company-specific risk be diversified away by investing in both ALL ENERGY and Medeze Group 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 ALL ENERGY and Medeze Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALL ENERGY UTILITIES and Medeze Group PCL, you can compare the effects of market volatilities on ALL ENERGY and Medeze Group 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 ALL ENERGY with a short position of Medeze Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALL ENERGY and Medeze Group.
Diversification Opportunities for ALL ENERGY and Medeze Group
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ALL and Medeze is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ALL ENERGY UTILITIES and Medeze Group PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medeze Group PCL and ALL ENERGY 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 ALL ENERGY UTILITIES are associated (or correlated) with Medeze Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medeze Group PCL has no effect on the direction of ALL ENERGY i.e., ALL ENERGY and Medeze Group go up and down completely randomly.
Pair Corralation between ALL ENERGY and Medeze Group
Assuming the 90 days horizon ALL ENERGY UTILITIES is expected to generate 0.86 times more return on investment than Medeze Group. However, ALL ENERGY UTILITIES is 1.16 times less risky than Medeze Group. It trades about -0.06 of its potential returns per unit of risk. Medeze Group PCL is currently generating about -0.23 per unit of risk. If you would invest 59.00 in ALL ENERGY UTILITIES on August 31, 2024 and sell it today you would lose (40.00) from holding ALL ENERGY UTILITIES or give up 67.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.62% |
| Values | Daily Returns |
ALL ENERGY UTILITIES vs. Medeze Group PCL
Performance |
| Timeline |
| ALL ENERGY UTILITIES |
| Medeze Group PCL |
ALL ENERGY and Medeze Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALL ENERGY and Medeze Group
The main advantage of trading using opposite ALL ENERGY and Medeze Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALL ENERGY position performs unexpectedly, Medeze Group 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 Medeze Group will offset losses from the drop in Medeze Group's long position.| ALL ENERGY vs. AP Public | ALL ENERGY vs. TRC Construction Public | ALL ENERGY vs. Bangkok Expressway and | ALL ENERGY vs. Lohakit Metal Public |
| Medeze Group vs. Information and Communication | Medeze Group vs. Asia Medical Agricultural | Medeze Group vs. Digital Telecommunications Infrastructure | Medeze Group vs. ALL ENERGY UTILITIES |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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