Correlation Between Aqua Public and Erawan
Can any of the company-specific risk be diversified away by investing in both Aqua Public and Erawan 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 Aqua Public and Erawan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqua Public and The Erawan Group, you can compare the effects of market volatilities on Aqua Public and Erawan 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 Aqua Public with a short position of Erawan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqua Public and Erawan.
Diversification Opportunities for Aqua Public and Erawan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqua and Erawan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Aqua Public and The Erawan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erawan Group and Aqua Public 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 Aqua Public are associated (or correlated) with Erawan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erawan Group has no effect on the direction of Aqua Public i.e., Aqua Public and Erawan go up and down completely randomly.
Pair Corralation between Aqua Public and Erawan
Assuming the 90 days trading horizon Aqua Public is expected to under-perform the Erawan. In addition to that, Aqua Public is 1.23 times more volatile than The Erawan Group. It trades about -0.11 of its total potential returns per unit of risk. The Erawan Group is currently generating about -0.05 per unit of volatility. If you would invest 410.00 in The Erawan Group on September 2, 2024 and sell it today you would lose (10.00) from holding The Erawan Group or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqua Public vs. The Erawan Group
Performance |
| Timeline |
| Aqua Public |
| Erawan Group |
Aqua Public and Erawan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqua Public and Erawan
The main advantage of trading using opposite Aqua Public and Erawan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqua Public position performs unexpectedly, Erawan 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 Erawan will offset losses from the drop in Erawan's long position.| Aqua Public vs. Bangkok Chain Hospital | Aqua Public vs. Grande Asset Hotels | Aqua Public vs. Better World Green | Aqua Public vs. Chularat Hospital Public |
| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |