Correlation Between Salee Colour and CPR Gomu
Can any of the company-specific risk be diversified away by investing in both Salee Colour and CPR Gomu 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 Salee Colour and CPR Gomu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salee Colour Public and CPR Gomu Industrial, you can compare the effects of market volatilities on Salee Colour and CPR Gomu 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 Salee Colour with a short position of CPR Gomu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salee Colour and CPR Gomu.
Diversification Opportunities for Salee Colour and CPR Gomu
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salee and CPR is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Salee Colour Public and CPR Gomu Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPR Gomu Industrial and Salee Colour 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 Salee Colour Public are associated (or correlated) with CPR Gomu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPR Gomu Industrial has no effect on the direction of Salee Colour i.e., Salee Colour and CPR Gomu go up and down completely randomly.
Pair Corralation between Salee Colour and CPR Gomu
Assuming the 90 days trading horizon Salee Colour Public is expected to under-perform the CPR Gomu. But the stock apears to be less risky and, when comparing its historical volatility, Salee Colour Public is 1.36 times less risky than CPR Gomu. The stock trades about -0.01 of its potential returns per unit of risk. The CPR Gomu Industrial is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 342.00 in CPR Gomu Industrial on August 29, 2024 and sell it today you would earn a total of 114.00 from holding CPR Gomu Industrial or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salee Colour Public vs. CPR Gomu Industrial
Performance |
| Timeline |
| Salee Colour Public |
| CPR Gomu Industrial |
Salee Colour and CPR Gomu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salee Colour and CPR Gomu
The main advantage of trading using opposite Salee Colour and CPR Gomu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salee Colour position performs unexpectedly, CPR Gomu 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 CPR Gomu will offset losses from the drop in CPR Gomu's long position.| Salee Colour vs. CPR Gomu Industrial | Salee Colour vs. BuilderSmart Public | Salee Colour vs. Getabec Public | Salee Colour vs. BGT Public |
| CPR Gomu vs. Thoresen Thai Agencies | CPR Gomu vs. Sri Trang Agro Industry | CPR Gomu vs. TPI Polene Public | CPR Gomu vs. Ratchthani Leasing 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings 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 | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |