Correlation Between Asia Fiber and Ekarat Engineering
Can any of the company-specific risk be diversified away by investing in both Asia Fiber and Ekarat Engineering 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 Asia Fiber and Ekarat Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Fiber Public and Ekarat Engineering Public, you can compare the effects of market volatilities on Asia Fiber and Ekarat Engineering 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 Asia Fiber with a short position of Ekarat Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Fiber and Ekarat Engineering.
Diversification Opportunities for Asia Fiber and Ekarat Engineering
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Ekarat is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Asia Fiber Public and Ekarat Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekarat Engineering Public and Asia Fiber 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 Asia Fiber Public are associated (or correlated) with Ekarat Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekarat Engineering Public has no effect on the direction of Asia Fiber i.e., Asia Fiber and Ekarat Engineering go up and down completely randomly.
Pair Corralation between Asia Fiber and Ekarat Engineering
Assuming the 90 days trading horizon Asia Fiber Public is expected to under-perform the Ekarat Engineering. In addition to that, Asia Fiber is 1.07 times more volatile than Ekarat Engineering Public. It trades about -0.14 of its total potential returns per unit of risk. Ekarat Engineering Public is currently generating about -0.06 per unit of volatility. If you would invest 96.00 in Ekarat Engineering Public on August 28, 2024 and sell it today you would lose (3.00) from holding Ekarat Engineering Public or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Asia Fiber Public vs. Ekarat Engineering Public
Performance |
| Timeline |
| Asia Fiber Public |
| Ekarat Engineering Public |
Asia Fiber and Ekarat Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Fiber and Ekarat Engineering
The main advantage of trading using opposite Asia Fiber and Ekarat Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Fiber position performs unexpectedly, Ekarat Engineering 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 Ekarat Engineering will offset losses from the drop in Ekarat Engineering's long position.| Asia Fiber vs. SCB X Public | Asia Fiber vs. Kasikornbank Public | Asia Fiber vs. PTT Public | Asia Fiber vs. Kasikornbank Public |
| Ekarat Engineering vs. Tata Steel Public | Ekarat Engineering vs. Thaifoods Group Public | Ekarat Engineering vs. TMT Steel Public | Ekarat Engineering vs. The Erawan Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |