Correlation Between CH Karnchang and Siri Prime
Can any of the company-specific risk be diversified away by investing in both CH Karnchang and Siri Prime 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 Siri Prime 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 Siri Prime Office, you can compare the effects of market volatilities on CH Karnchang and Siri Prime 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 Siri Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Karnchang and Siri Prime.
Diversification Opportunities for CH Karnchang and Siri Prime
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CH Karnchang and Siri is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CH Karnchang Public and Siri Prime Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siri Prime Office 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 Siri Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siri Prime Office has no effect on the direction of CH Karnchang i.e., CH Karnchang and Siri Prime go up and down completely randomly.
Pair Corralation between CH Karnchang and Siri Prime
Assuming the 90 days horizon CH Karnchang Public is expected to under-perform the Siri Prime. In addition to that, CH Karnchang is 1.13 times more volatile than Siri Prime Office. It trades about -0.06 of its total potential returns per unit of risk. Siri Prime Office is currently generating about 0.08 per unit of volatility. If you would invest 154.00 in Siri Prime Office on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Siri Prime Office or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
CH Karnchang Public vs. Siri Prime Office
Performance |
| Timeline |
| CH Karnchang Public |
| Siri Prime Office |
CH Karnchang and Siri Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Karnchang and Siri Prime
The main advantage of trading using opposite CH Karnchang and Siri Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Karnchang position performs unexpectedly, Siri Prime 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 Siri Prime will offset losses from the drop in Siri Prime'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 |
| Siri Prime vs. Land and Houses | Siri Prime vs. Bangkok Bank Public | Siri Prime vs. Charoen Pokphand Foods |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |