Correlation Between Chiangmai Frozen and Digital Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Chiangmai Frozen and Digital Telecommunicatio 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 Chiangmai Frozen and Digital Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiangmai Frozen Foods and Digital Telecommunications Infrastructure, you can compare the effects of market volatilities on Chiangmai Frozen and Digital Telecommunicatio 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 Chiangmai Frozen with a short position of Digital Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiangmai Frozen and Digital Telecommunicatio.
Diversification Opportunities for Chiangmai Frozen and Digital Telecommunicatio
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chiangmai and Digital is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chiangmai Frozen Foods and Digital Telecommunications Inf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Telecommunicatio and Chiangmai Frozen 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 Chiangmai Frozen Foods are associated (or correlated) with Digital Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Telecommunicatio has no effect on the direction of Chiangmai Frozen i.e., Chiangmai Frozen and Digital Telecommunicatio go up and down completely randomly.
Pair Corralation between Chiangmai Frozen and Digital Telecommunicatio
Assuming the 90 days horizon Chiangmai Frozen Foods is expected to under-perform the Digital Telecommunicatio. In addition to that, Chiangmai Frozen is 1.49 times more volatile than Digital Telecommunications Infrastructure. It trades about -0.45 of its total potential returns per unit of risk. Digital Telecommunications Infrastructure is currently generating about -0.07 per unit of volatility. If you would invest 860.00 in Digital Telecommunications Infrastructure on October 31, 2024 and sell it today you would lose (10.00) from holding Digital Telecommunications Infrastructure or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiangmai Frozen Foods vs. Digital Telecommunications Inf
Performance |
| Timeline |
| Chiangmai Frozen Foods |
| Digital Telecommunicatio |
Chiangmai Frozen and Digital Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiangmai Frozen and Digital Telecommunicatio
The main advantage of trading using opposite Chiangmai Frozen and Digital Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiangmai Frozen position performs unexpectedly, Digital Telecommunicatio 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 Digital Telecommunicatio will offset losses from the drop in Digital Telecommunicatio's long position.| Chiangmai Frozen vs. Chumporn Palm Oil | Chiangmai Frozen vs. GFPT Public | Chiangmai Frozen vs. Crown Seal Public | Chiangmai Frozen vs. Dynasty Ceramic 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |