Correlation Between CH Karnchang and Project Planning
Can any of the company-specific risk be diversified away by investing in both CH Karnchang and Project Planning 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 Project Planning 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 Project Planning Service, you can compare the effects of market volatilities on CH Karnchang and Project Planning 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 Project Planning. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Karnchang and Project Planning.
Diversification Opportunities for CH Karnchang and Project Planning
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CH Karnchang and Project is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CH Karnchang Public and Project Planning Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Project Planning Service 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 Project Planning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Project Planning Service has no effect on the direction of CH Karnchang i.e., CH Karnchang and Project Planning go up and down completely randomly.
Pair Corralation between CH Karnchang and Project Planning
Assuming the 90 days horizon CH Karnchang Public is expected to generate 0.35 times more return on investment than Project Planning. However, CH Karnchang Public is 2.87 times less risky than Project Planning. It trades about -0.05 of its potential returns per unit of risk. Project Planning Service is currently generating about -0.19 per unit of risk. If you would invest 1,870 in CH Karnchang Public on August 27, 2024 and sell it today you would lose (40.00) from holding CH Karnchang Public or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Karnchang Public vs. Project Planning Service
Performance |
| Timeline |
| CH Karnchang Public |
| Project Planning Service |
CH Karnchang and Project Planning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Karnchang and Project Planning
The main advantage of trading using opposite CH Karnchang and Project Planning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Karnchang position performs unexpectedly, Project Planning 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 Project Planning will offset losses from the drop in Project Planning's long position.| CH Karnchang vs. Tata Steel Public | CH Karnchang vs. Thaifoods Group Public | CH Karnchang vs. TMT Steel Public | CH Karnchang vs. The Erawan Group |
| Project Planning vs. TCM Public | Project Planning vs. The Steel Public | Project Planning vs. The Erawan Group | Project Planning vs. Ditto 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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