Correlation Between Chamni Eye and Winner Group
Can any of the company-specific risk be diversified away by investing in both Chamni Eye and Winner Group 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 Winner Group 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 Winner Group Enterprise, you can compare the effects of market volatilities on Chamni Eye and Winner Group 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 Winner Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chamni Eye and Winner Group.
Diversification Opportunities for Chamni Eye and Winner Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chamni and Winner is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chamni Eye PCL and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise 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 Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of Chamni Eye i.e., Chamni Eye and Winner Group go up and down completely randomly.
Pair Corralation between Chamni Eye and Winner Group
Assuming the 90 days trading horizon Chamni Eye PCL is expected to under-perform the Winner Group. But the stock apears to be less risky and, when comparing its historical volatility, Chamni Eye PCL is 27.41 times less risky than Winner Group. The stock trades about -0.03 of its potential returns per unit of risk. The Winner Group Enterprise is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 208.00 in Winner Group Enterprise on August 29, 2024 and sell it today you would lose (4.00) from holding Winner Group Enterprise or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chamni Eye PCL vs. Winner Group Enterprise
Performance |
| Timeline |
| Chamni Eye PCL |
| Winner Group Enterprise |
Chamni Eye and Winner Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chamni Eye and Winner Group
The main advantage of trading using opposite Chamni Eye and Winner Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chamni Eye position performs unexpectedly, Winner Group 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 Winner Group will offset losses from the drop in Winner Group'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 |
| Winner Group vs. T S Flour | Winner Group vs. Vintcom Technology PCL | Winner Group vs. Thanapiriya Public | Winner Group vs. Ubis 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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