Correlation Between CHUWIT FARM and DTC Industries
Can any of the company-specific risk be diversified away by investing in both CHUWIT FARM and DTC Industries 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 CHUWIT FARM and DTC Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHUWIT FARM PUBLIC and DTC Industries Public, you can compare the effects of market volatilities on CHUWIT FARM and DTC Industries 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 CHUWIT FARM with a short position of DTC Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHUWIT FARM and DTC Industries.
Diversification Opportunities for CHUWIT FARM and DTC Industries
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHUWIT and DTC is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CHUWIT FARM PUBLIC and DTC Industries Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTC Industries Public and CHUWIT FARM 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 CHUWIT FARM PUBLIC are associated (or correlated) with DTC Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTC Industries Public has no effect on the direction of CHUWIT FARM i.e., CHUWIT FARM and DTC Industries go up and down completely randomly.
Pair Corralation between CHUWIT FARM and DTC Industries
Assuming the 90 days trading horizon CHUWIT FARM PUBLIC is expected to under-perform the DTC Industries. But the stock apears to be less risky and, when comparing its historical volatility, CHUWIT FARM PUBLIC is 1.81 times less risky than DTC Industries. The stock trades about -0.56 of its potential returns per unit of risk. The DTC Industries Public is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 3,325 in DTC Industries Public on September 2, 2024 and sell it today you would lose (375.00) from holding DTC Industries Public or give up 11.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHUWIT FARM PUBLIC vs. DTC Industries Public
Performance |
| Timeline |
| CHUWIT FARM PUBLIC |
| DTC Industries Public |
CHUWIT FARM and DTC Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHUWIT FARM and DTC Industries
The main advantage of trading using opposite CHUWIT FARM and DTC Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHUWIT FARM position performs unexpectedly, DTC Industries 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 DTC Industries will offset losses from the drop in DTC Industries' long position.| CHUWIT FARM vs. AP Public | CHUWIT FARM vs. TRC Construction Public | CHUWIT FARM vs. Bangkok Expressway and | CHUWIT FARM vs. Lohakit Metal Public |
| DTC Industries vs. Warrix Sport PCL | DTC Industries vs. Bank of Ayudhya | DTC Industries vs. Bhiraj Office Leasehold | DTC Industries vs. Digital Telecommunications Infrastructure |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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