Correlation Between Carabao Group and Ekachai Medical
Can any of the company-specific risk be diversified away by investing in both Carabao Group and Ekachai Medical 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 Carabao Group and Ekachai Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carabao Group Public and Ekachai Medical Care, you can compare the effects of market volatilities on Carabao Group and Ekachai Medical 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 Carabao Group with a short position of Ekachai Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carabao Group and Ekachai Medical.
Diversification Opportunities for Carabao Group and Ekachai Medical
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carabao and Ekachai is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Carabao Group Public and Ekachai Medical Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekachai Medical Care and Carabao Group 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 Carabao Group Public are associated (or correlated) with Ekachai Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekachai Medical Care has no effect on the direction of Carabao Group i.e., Carabao Group and Ekachai Medical go up and down completely randomly.
Pair Corralation between Carabao Group and Ekachai Medical
Assuming the 90 days trading horizon Carabao Group Public is expected to generate 1.67 times more return on investment than Ekachai Medical. However, Carabao Group is 1.67 times more volatile than Ekachai Medical Care. It trades about 0.0 of its potential returns per unit of risk. Ekachai Medical Care is currently generating about 0.0 per unit of risk. If you would invest 8,120 in Carabao Group Public on August 25, 2024 and sell it today you would lose (170.00) from holding Carabao Group Public or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carabao Group Public vs. Ekachai Medical Care
Performance |
| Timeline |
| Carabao Group Public |
| Ekachai Medical Care |
Carabao Group and Ekachai Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carabao Group and Ekachai Medical
The main advantage of trading using opposite Carabao Group and Ekachai Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carabao Group position performs unexpectedly, Ekachai Medical 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 Ekachai Medical will offset losses from the drop in Ekachai Medical's long position.| Carabao Group vs. CP ALL Public | Carabao Group vs. Thai Union Group | Carabao Group vs. Minor International Public | Carabao Group vs. Central Pattana Public |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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