Correlation Between Cho Thavee and Gulf Energy
Can any of the company-specific risk be diversified away by investing in both Cho Thavee and Gulf Energy 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 Gulf Energy 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 Gulf Energy Development, you can compare the effects of market volatilities on Cho Thavee and Gulf Energy 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 Gulf Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cho Thavee and Gulf Energy.
Diversification Opportunities for Cho Thavee and Gulf Energy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cho and Gulf is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cho Thavee Public and Gulf Energy Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Energy Development 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 Gulf Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Energy Development has no effect on the direction of Cho Thavee i.e., Cho Thavee and Gulf Energy go up and down completely randomly.
Pair Corralation between Cho Thavee and Gulf Energy
Assuming the 90 days trading horizon Cho Thavee Public is expected to under-perform the Gulf Energy. In addition to that, Cho Thavee is 6.93 times more volatile than Gulf Energy Development. It trades about -0.03 of its total potential returns per unit of risk. Gulf Energy Development is currently generating about -0.03 per unit of volatility. If you would invest 6,525 in Gulf Energy Development on August 28, 2024 and sell it today you would lose (100.00) from holding Gulf Energy Development or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cho Thavee Public vs. Gulf Energy Development
Performance |
| Timeline |
| Cho Thavee Public |
| Gulf Energy Development |
Cho Thavee and Gulf Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cho Thavee and Gulf Energy
The main advantage of trading using opposite Cho Thavee and Gulf Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cho Thavee position performs unexpectedly, Gulf Energy 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 Gulf Energy will offset losses from the drop in Gulf Energy'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 |
| Gulf Energy vs. WHA Public | Gulf Energy vs. TPI Polene Power | Gulf Energy vs. Bangkok Expressway and | Gulf Energy vs. BGrimm Power 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |