Correlation Between Asia Metal and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both Asia Metal and Rojana Industrial 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 Metal and Rojana Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Metal Public and Rojana Industrial Park, you can compare the effects of market volatilities on Asia Metal and Rojana Industrial 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 Metal with a short position of Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Metal and Rojana Industrial.
Diversification Opportunities for Asia Metal and Rojana Industrial
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asia and Rojana is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Asia Metal Public and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park and Asia Metal 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 Metal Public are associated (or correlated) with Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of Asia Metal i.e., Asia Metal and Rojana Industrial go up and down completely randomly.
Pair Corralation between Asia Metal and Rojana Industrial
Assuming the 90 days trading horizon Asia Metal Public is expected to under-perform the Rojana Industrial. In addition to that, Asia Metal is 3.22 times more volatile than Rojana Industrial Park. It trades about -0.29 of its total potential returns per unit of risk. Rojana Industrial Park is currently generating about -0.26 per unit of volatility. If you would invest 615.00 in Rojana Industrial Park on October 20, 2024 and sell it today you would lose (55.00) from holding Rojana Industrial Park or give up 8.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Metal Public vs. Rojana Industrial Park
Performance |
| Timeline |
| Asia Metal Public |
| Rojana Industrial Park |
Asia Metal and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Metal and Rojana Industrial
The main advantage of trading using opposite Asia Metal and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Metal position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial's long position.| Asia Metal vs. 2S Metal Public | Asia Metal vs. AAPICO Hitech Public | Asia Metal vs. CSP Steel Center | Asia Metal vs. Bangsaphan Barmill Public |
| Rojana Industrial vs. Ratch Group Public | Rojana Industrial vs. RPCG Public | Rojana Industrial vs. Siam City Cement | Rojana Industrial vs. Siamgas and Petrochemicals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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