Correlation Between CI Group and Thai Rubber
Can any of the company-specific risk be diversified away by investing in both CI Group and Thai Rubber 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 Thai Rubber 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 Thai Rubber Latex, you can compare the effects of market volatilities on CI Group and Thai Rubber 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 Thai Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Group and Thai Rubber.
Diversification Opportunities for CI Group and Thai Rubber
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CIG and Thai is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CI Group Public and Thai Rubber Latex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Rubber Latex 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 Thai Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Rubber Latex has no effect on the direction of CI Group i.e., CI Group and Thai Rubber go up and down completely randomly.
Pair Corralation between CI Group and Thai Rubber
Assuming the 90 days trading horizon CI Group Public is expected to generate 19.8 times more return on investment than Thai Rubber. However, CI Group is 19.8 times more volatile than Thai Rubber Latex. It trades about 0.05 of its potential returns per unit of risk. Thai Rubber Latex is currently generating about -0.02 per unit of risk. If you would invest 19.00 in CI Group Public on August 29, 2024 and sell it today you would lose (14.00) from holding CI Group Public or give up 73.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Group Public vs. Thai Rubber Latex
Performance |
| Timeline |
| CI Group Public |
| Thai Rubber Latex |
CI Group and Thai Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Group and Thai Rubber
The main advantage of trading using opposite CI Group and Thai Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Group position performs unexpectedly, Thai Rubber 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 Thai Rubber will offset losses from the drop in Thai Rubber'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 |
| Thai Rubber vs. Thoresen Thai Agencies | Thai Rubber vs. Sri Trang Agro Industry | Thai Rubber vs. TPI Polene Public | Thai Rubber vs. Ratchthani Leasing 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |