Correlation Between Chayo Group and Srisawad Power
Can any of the company-specific risk be diversified away by investing in both Chayo Group and Srisawad Power 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 Chayo Group and Srisawad Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chayo Group Public and Srisawad Power 1979, you can compare the effects of market volatilities on Chayo Group and Srisawad Power 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 Chayo Group with a short position of Srisawad Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chayo Group and Srisawad Power.
Diversification Opportunities for Chayo Group and Srisawad Power
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chayo and Srisawad is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Chayo Group Public and Srisawad Power 1979 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Power 1979 and Chayo 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 Chayo Group Public are associated (or correlated) with Srisawad Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Power 1979 has no effect on the direction of Chayo Group i.e., Chayo Group and Srisawad Power go up and down completely randomly.
Pair Corralation between Chayo Group and Srisawad Power
Assuming the 90 days trading horizon Chayo Group Public is expected to under-perform the Srisawad Power. But the stock apears to be less risky and, when comparing its historical volatility, Chayo Group Public is 1.08 times less risky than Srisawad Power. The stock trades about -0.08 of its potential returns per unit of risk. The Srisawad Power 1979 is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3,675 in Srisawad Power 1979 on December 4, 2024 and sell it today you would lose (250.00) from holding Srisawad Power 1979 or give up 6.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Chayo Group Public vs. Srisawad Power 1979
Performance |
| Timeline |
| Chayo Group Public |
| Srisawad Power 1979 |
Chayo Group and Srisawad Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chayo Group and Srisawad Power
The main advantage of trading using opposite Chayo Group and Srisawad Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chayo Group position performs unexpectedly, Srisawad Power 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 Srisawad Power will offset losses from the drop in Srisawad Power's long position.| Chayo Group vs. JMT Network Services | Chayo Group vs. Srisawad Power 1979 | Chayo Group vs. Carabao Group Public | Chayo Group vs. Muangthai Capital Public |
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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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