Correlation Between Chewathai Public and E For
Can any of the company-specific risk be diversified away by investing in both Chewathai Public and E For 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 Chewathai Public and E For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chewathai Public and E for L, you can compare the effects of market volatilities on Chewathai Public and E For 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 Chewathai Public with a short position of E For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chewathai Public and E For.
Diversification Opportunities for Chewathai Public and E For
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chewathai and EFORL is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chewathai Public and E for L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E for L and Chewathai Public 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 Chewathai Public are associated (or correlated) with E For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E for L has no effect on the direction of Chewathai Public i.e., Chewathai Public and E For go up and down completely randomly.
Pair Corralation between Chewathai Public and E For
Assuming the 90 days trading horizon Chewathai Public is expected to under-perform the E For. But the stock apears to be less risky and, when comparing its historical volatility, Chewathai Public is 1.86 times less risky than E For. The stock trades about -0.21 of its potential returns per unit of risk. The E for L is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 13.00 in E for L on August 28, 2024 and sell it today you would earn a total of 16.00 from holding E for L or generate 123.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chewathai Public vs. E for L
Performance |
| Timeline |
| Chewathai Public |
| E for L |
Chewathai Public and E For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chewathai Public and E For
The main advantage of trading using opposite Chewathai Public and E For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chewathai Public position performs unexpectedly, E For 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 E For will offset losses from the drop in E For's long position.| Chewathai Public vs. Cho Thavee Public | Chewathai Public vs. East Coast Furnitech | Chewathai Public vs. Hydrotek Public | Chewathai Public vs. Chularat Hospital Public |
| E For vs. East Coast Furnitech | E For vs. Forth Smart Service | E For vs. Filter Vision Public | E For vs. ARIP 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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