Correlation Between CI Group and Gunkul Engineering
Can any of the company-specific risk be diversified away by investing in both CI Group and Gunkul Engineering 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 CI Group and Gunkul Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Group Public and Gunkul Engineering Public, you can compare the effects of market volatilities on CI Group and Gunkul Engineering 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 CI Group with a short position of Gunkul Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Group and Gunkul Engineering.
Diversification Opportunities for CI Group and Gunkul Engineering
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CIG and Gunkul is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CI Group Public and Gunkul Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunkul Engineering Public and CI 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 CI Group Public are associated (or correlated) with Gunkul Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunkul Engineering Public has no effect on the direction of CI Group i.e., CI Group and Gunkul Engineering go up and down completely randomly.
Pair Corralation between CI Group and Gunkul Engineering
Assuming the 90 days trading horizon CI Group Public is expected to generate 6.14 times more return on investment than Gunkul Engineering. However, CI Group is 6.14 times more volatile than Gunkul Engineering Public. It trades about 0.14 of its potential returns per unit of risk. Gunkul Engineering Public is currently generating about -0.33 per unit of risk. If you would invest 4.00 in CI Group Public on August 29, 2024 and sell it today you would earn a total of 1.00 from holding CI Group Public or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Group Public vs. Gunkul Engineering Public
Performance |
| Timeline |
| CI Group Public |
| Gunkul Engineering Public |
CI Group and Gunkul Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Group and Gunkul Engineering
The main advantage of trading using opposite CI Group and Gunkul Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Group position performs unexpectedly, Gunkul Engineering 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 Gunkul Engineering will offset losses from the drop in Gunkul Engineering's long position.| CI Group vs. ASIA Capital Group | CI Group vs. Cho Thavee Public | CI Group vs. CMO Public | CI Group vs. CPR Gomu Industrial |
| Gunkul Engineering vs. MCS Steel Public | Gunkul Engineering vs. Asia Plus Group | Gunkul Engineering vs. Lalin Property Public | Gunkul Engineering vs. Lam Soon 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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