Correlation Between Carabao Group and TOA Paint
Can any of the company-specific risk be diversified away by investing in both Carabao Group and TOA Paint 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 TOA Paint 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 TOA Paint Public, you can compare the effects of market volatilities on Carabao Group and TOA Paint 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 TOA Paint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carabao Group and TOA Paint.
Diversification Opportunities for Carabao Group and TOA Paint
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carabao and TOA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Carabao Group Public and TOA Paint Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOA Paint Public 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 TOA Paint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOA Paint Public has no effect on the direction of Carabao Group i.e., Carabao Group and TOA Paint go up and down completely randomly.
Pair Corralation between Carabao Group and TOA Paint
Assuming the 90 days trading horizon Carabao Group Public is expected to generate 0.73 times more return on investment than TOA Paint. However, Carabao Group Public is 1.37 times less risky than TOA Paint. It trades about -0.07 of its potential returns per unit of risk. TOA Paint Public is currently generating about -0.32 per unit of risk. If you would invest 7,975 in Carabao Group Public on September 1, 2024 and sell it today you would lose (300.00) from holding Carabao Group Public or give up 3.76% 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. TOA Paint Public
Performance |
| Timeline |
| Carabao Group Public |
| TOA Paint Public |
Carabao Group and TOA Paint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carabao Group and TOA Paint
The main advantage of trading using opposite Carabao Group and TOA Paint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carabao Group position performs unexpectedly, TOA Paint 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 TOA Paint will offset losses from the drop in TOA Paint's long position.| Carabao Group vs. CP ALL Public | Carabao Group vs. Minor International Public | Carabao Group vs. Srisawad Power 1979 | Carabao Group vs. Home Product Center |
| TOA Paint vs. Berli Jucker Public | TOA Paint vs. Carabao Group Public | TOA Paint vs. Home Product Center | TOA Paint vs. Bangkok Dusit Medical |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |