Correlation Between CH Karnchang and Seafco Public
Can any of the company-specific risk be diversified away by investing in both CH Karnchang and Seafco Public 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 Seafco Public 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 Seafco Public, you can compare the effects of market volatilities on CH Karnchang and Seafco Public 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 Seafco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Karnchang and Seafco Public.
Diversification Opportunities for CH Karnchang and Seafco Public
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CH Karnchang and Seafco is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CH Karnchang Public and Seafco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafco Public 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 Seafco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafco Public has no effect on the direction of CH Karnchang i.e., CH Karnchang and Seafco Public go up and down completely randomly.
Pair Corralation between CH Karnchang and Seafco Public
Assuming the 90 days horizon CH Karnchang Public is expected to under-perform the Seafco Public. But the stock apears to be less risky and, when comparing its historical volatility, CH Karnchang Public is 41.1 times less risky than Seafco Public. The stock trades about -0.06 of its potential returns per unit of risk. The Seafco Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 235.00 in Seafco Public on September 1, 2024 and sell it today you would lose (38.00) from holding Seafco Public or give up 16.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Karnchang Public vs. Seafco Public
Performance |
| Timeline |
| CH Karnchang Public |
| Seafco Public |
CH Karnchang and Seafco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Karnchang and Seafco Public
The main advantage of trading using opposite CH Karnchang and Seafco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Karnchang position performs unexpectedly, Seafco Public 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 Seafco Public will offset losses from the drop in Seafco Public's 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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