Correlation Between CH Karnchang and Asia Plus
Can any of the company-specific risk be diversified away by investing in both CH Karnchang and Asia Plus 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 CH Karnchang and Asia Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CH Karnchang Public and Asia Plus Group, you can compare the effects of market volatilities on CH Karnchang and Asia Plus 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 CH Karnchang with a short position of Asia Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Karnchang and Asia Plus.
Diversification Opportunities for CH Karnchang and Asia Plus
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CH Karnchang and Asia is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CH Karnchang Public and Asia Plus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Plus Group and CH Karnchang 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 CH Karnchang Public are associated (or correlated) with Asia Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Plus Group has no effect on the direction of CH Karnchang i.e., CH Karnchang and Asia Plus go up and down completely randomly.
Pair Corralation between CH Karnchang and Asia Plus
Assuming the 90 days horizon CH Karnchang Public is expected to under-perform the Asia Plus. In addition to that, CH Karnchang is 1.85 times more volatile than Asia Plus Group. It trades about -0.14 of its total potential returns per unit of risk. Asia Plus Group is currently generating about -0.21 per unit of volatility. If you would invest 254.00 in Asia Plus Group on September 1, 2024 and sell it today you would lose (10.00) from holding Asia Plus Group or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CH Karnchang Public vs. Asia Plus Group
Performance |
| Timeline |
| CH Karnchang Public |
| Asia Plus Group |
CH Karnchang and Asia Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Karnchang and Asia Plus
The main advantage of trading using opposite CH Karnchang and Asia Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Karnchang position performs unexpectedly, Asia Plus 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 Asia Plus will offset losses from the drop in Asia Plus' long position.| CH Karnchang vs. Gulf Energy Development | CH Karnchang vs. Energy Absolute Public | CH Karnchang vs. WHA Public | CH Karnchang vs. Bangkok Expressway and |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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