Correlation Between Ekarat Engineering and JD Food
Can any of the company-specific risk be diversified away by investing in both Ekarat Engineering and JD Food 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 Ekarat Engineering and JD Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekarat Engineering Public and JD Food PCL, you can compare the effects of market volatilities on Ekarat Engineering and JD Food 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 Ekarat Engineering with a short position of JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekarat Engineering and JD Food.
Diversification Opportunities for Ekarat Engineering and JD Food
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ekarat and JDF is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ekarat Engineering Public and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL and Ekarat Engineering 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 Ekarat Engineering Public are associated (or correlated) with JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Ekarat Engineering i.e., Ekarat Engineering and JD Food go up and down completely randomly.
Pair Corralation between Ekarat Engineering and JD Food
Assuming the 90 days trading horizon Ekarat Engineering Public is expected to generate 0.81 times more return on investment than JD Food. However, Ekarat Engineering Public is 1.23 times less risky than JD Food. It trades about 0.13 of its potential returns per unit of risk. JD Food PCL is currently generating about 0.03 per unit of risk. If you would invest 91.00 in Ekarat Engineering Public on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Ekarat Engineering Public or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ekarat Engineering Public vs. JD Food PCL
Performance |
| Timeline |
| Ekarat Engineering Public |
| JD Food PCL |
Ekarat Engineering and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekarat Engineering and JD Food
The main advantage of trading using opposite Ekarat Engineering and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekarat Engineering position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food's long position.| Ekarat Engineering vs. Asia Aviation Public | Ekarat Engineering vs. Bangkok Dusit Medical | Ekarat Engineering vs. Bangkok Expressway and | Ekarat Engineering vs. Airports of Thailand |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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