Correlation Between Chiangmai Frozen and Turnkey Communication
Can any of the company-specific risk be diversified away by investing in both Chiangmai Frozen and Turnkey Communication 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 Turnkey Communication 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 Turnkey Communication Services, you can compare the effects of market volatilities on Chiangmai Frozen and Turnkey Communication 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 Turnkey Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiangmai Frozen and Turnkey Communication.
Diversification Opportunities for Chiangmai Frozen and Turnkey Communication
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chiangmai and Turnkey is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chiangmai Frozen Foods and Turnkey Communication Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turnkey Communication 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 Turnkey Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turnkey Communication has no effect on the direction of Chiangmai Frozen i.e., Chiangmai Frozen and Turnkey Communication go up and down completely randomly.
Pair Corralation between Chiangmai Frozen and Turnkey Communication
Assuming the 90 days horizon Chiangmai Frozen Foods is expected to under-perform the Turnkey Communication. But the stock apears to be less risky and, when comparing its historical volatility, Chiangmai Frozen Foods is 2.76 times less risky than Turnkey Communication. The stock trades about -0.45 of its potential returns per unit of risk. The Turnkey Communication Services is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,110 in Turnkey Communication Services on October 31, 2024 and sell it today you would earn a total of 10.00 from holding Turnkey Communication Services or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiangmai Frozen Foods vs. Turnkey Communication Services
Performance |
| Timeline |
| Chiangmai Frozen Foods |
| Turnkey Communication |
Chiangmai Frozen and Turnkey Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiangmai Frozen and Turnkey Communication
The main advantage of trading using opposite Chiangmai Frozen and Turnkey Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiangmai Frozen position performs unexpectedly, Turnkey Communication 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 Turnkey Communication will offset losses from the drop in Turnkey Communication'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 |
| Turnkey Communication vs. Sabuy Technology Public | Turnkey Communication vs. Takuni Group Public | Turnkey Communication vs. Ngern Tid Lor | Turnkey Communication vs. SVI 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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