Correlation Between Chiangmai Frozen and Stock Exchange
Can any of the company-specific risk be diversified away by investing in both Chiangmai Frozen and Stock Exchange 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 Stock Exchange 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 Stock Exchange Of, you can compare the effects of market volatilities on Chiangmai Frozen and Stock Exchange 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 Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiangmai Frozen and Stock Exchange.
Diversification Opportunities for Chiangmai Frozen and Stock Exchange
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chiangmai and Stock is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chiangmai Frozen Foods and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange 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 Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of Chiangmai Frozen i.e., Chiangmai Frozen and Stock Exchange go up and down completely randomly.
Pair Corralation between Chiangmai Frozen and Stock Exchange
Assuming the 90 days horizon Chiangmai Frozen Foods is expected to generate 1.93 times more return on investment than Stock Exchange. However, Chiangmai Frozen is 1.93 times more volatile than Stock Exchange Of. It trades about -0.11 of its potential returns per unit of risk. Stock Exchange Of is currently generating about -0.32 per unit of risk. If you would invest 208.00 in Chiangmai Frozen Foods on September 20, 2024 and sell it today you would lose (6.00) from holding Chiangmai Frozen Foods or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiangmai Frozen Foods vs. Stock Exchange Of
Performance |
| Timeline |
Chiangmai Frozen and Stock Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Chiangmai Frozen Foods
Pair trading matchups for Chiangmai Frozen
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with Chiangmai Frozen and Stock Exchange
The main advantage of trading using opposite Chiangmai Frozen and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiangmai Frozen position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange's long position.| Chiangmai Frozen vs. GFPT Public | Chiangmai Frozen vs. Dynasty Ceramic Public | Chiangmai Frozen vs. Haad Thip Public | Chiangmai Frozen vs. The Erawan Group |
| Stock Exchange vs. Stars Microelectronics Public | Stock Exchange vs. CHAOSUA FOODS INDUSTRY | Stock Exchange vs. TMT Steel Public | Stock Exchange vs. Chiangmai Frozen 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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