Correlation Between CHUWIT FARM and Interlink Communication
Can any of the company-specific risk be diversified away by investing in both CHUWIT FARM and Interlink Communication 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 Interlink Communication 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 Interlink Communication Public, you can compare the effects of market volatilities on CHUWIT FARM and Interlink Communication 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 Interlink Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHUWIT FARM and Interlink Communication.
Diversification Opportunities for CHUWIT FARM and Interlink Communication
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CHUWIT and Interlink is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CHUWIT FARM PUBLIC and Interlink Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Communication 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 Interlink Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Communication has no effect on the direction of CHUWIT FARM i.e., CHUWIT FARM and Interlink Communication go up and down completely randomly.
Pair Corralation between CHUWIT FARM and Interlink Communication
Assuming the 90 days trading horizon CHUWIT FARM PUBLIC is expected to under-perform the Interlink Communication. But the stock apears to be less risky and, when comparing its historical volatility, CHUWIT FARM PUBLIC is 1.04 times less risky than Interlink Communication. The stock trades about -0.54 of its potential returns per unit of risk. The Interlink Communication Public is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Interlink Communication Public on August 27, 2024 and sell it today you would lose (20.00) from holding Interlink Communication Public or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHUWIT FARM PUBLIC vs. Interlink Communication Public
Performance |
| Timeline |
| CHUWIT FARM PUBLIC |
| Interlink Communication |
CHUWIT FARM and Interlink Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHUWIT FARM and Interlink Communication
The main advantage of trading using opposite CHUWIT FARM and Interlink Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHUWIT FARM position performs unexpectedly, Interlink Communication 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 Interlink Communication will offset losses from the drop in Interlink Communication's long position.| CHUWIT FARM vs. Delta Electronics Public | CHUWIT FARM vs. Delta Electronics Public | CHUWIT FARM vs. Airports of Thailand | CHUWIT FARM vs. Airports of Thailand |
| Interlink Communication vs. AP Public | Interlink Communication vs. Jasmine International Public | Interlink Communication vs. Asia Plus Group | Interlink Communication vs. Bangkok Aviation Fuel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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