Correlation Between Cho Thavee and CAZ Public
Can any of the company-specific risk be diversified away by investing in both Cho Thavee and CAZ Public 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 Cho Thavee and CAZ Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cho Thavee Public and CAZ Public, you can compare the effects of market volatilities on Cho Thavee and CAZ Public 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 Cho Thavee with a short position of CAZ Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cho Thavee and CAZ Public.
Diversification Opportunities for Cho Thavee and CAZ Public
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cho and CAZ is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cho Thavee Public and CAZ Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAZ Public and Cho Thavee 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 Cho Thavee Public are associated (or correlated) with CAZ Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAZ Public has no effect on the direction of Cho Thavee i.e., Cho Thavee and CAZ Public go up and down completely randomly.
Pair Corralation between Cho Thavee and CAZ Public
Assuming the 90 days trading horizon Cho Thavee is expected to generate 1.16 times less return on investment than CAZ Public. In addition to that, Cho Thavee is 1.01 times more volatile than CAZ Public. It trades about 0.03 of its total potential returns per unit of risk. CAZ Public is currently generating about 0.04 per unit of volatility. If you would invest 387.00 in CAZ Public on September 3, 2024 and sell it today you would lose (155.00) from holding CAZ Public or give up 40.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cho Thavee Public vs. CAZ Public
Performance |
| Timeline |
| Cho Thavee Public |
| CAZ Public |
Cho Thavee and CAZ Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cho Thavee and CAZ Public
The main advantage of trading using opposite Cho Thavee and CAZ Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cho Thavee position performs unexpectedly, CAZ Public 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 CAZ Public will offset losses from the drop in CAZ Public's long position.| Cho Thavee vs. Chewathai Public | Cho Thavee vs. Filter Vision Public | Cho Thavee vs. G Capital Public | Cho Thavee vs. Demco 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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