Correlation Between Chamni Eye and Thai Union
Can any of the company-specific risk be diversified away by investing in both Chamni Eye and Thai Union 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 Chamni Eye and Thai Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chamni Eye PCL and Thai Union Group, you can compare the effects of market volatilities on Chamni Eye and Thai Union 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 Chamni Eye with a short position of Thai Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chamni Eye and Thai Union.
Diversification Opportunities for Chamni Eye and Thai Union
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chamni and Thai is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Chamni Eye PCL and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group and Chamni Eye 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 Chamni Eye PCL are associated (or correlated) with Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Chamni Eye i.e., Chamni Eye and Thai Union go up and down completely randomly.
Pair Corralation between Chamni Eye and Thai Union
Assuming the 90 days trading horizon Chamni Eye PCL is expected to under-perform the Thai Union. But the stock apears to be less risky and, when comparing its historical volatility, Chamni Eye PCL is 38.73 times less risky than Thai Union. The stock trades about -0.03 of its potential returns per unit of risk. The Thai Union Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,691 in Thai Union Group on August 29, 2024 and sell it today you would lose (311.00) from holding Thai Union Group or give up 18.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chamni Eye PCL vs. Thai Union Group
Performance |
| Timeline |
| Chamni Eye PCL |
| Thai Union Group |
Chamni Eye and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chamni Eye and Thai Union
The main advantage of trading using opposite Chamni Eye and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chamni Eye position performs unexpectedly, Thai Union 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 Thai Union will offset losses from the drop in Thai Union's long position.| Chamni Eye vs. Bioscience Animal Health | Chamni Eye vs. Bless Asset Group | Chamni Eye vs. CAZ Public | Chamni Eye vs. Bluebik Group PCL |
| Thai Union vs. Carabao Group Public | Thai Union vs. Jay Mart Public | Thai Union vs. Gulf Energy Development | Thai Union vs. KCE Electronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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