Correlation Between CPR Gomu and Itthirit Nice
Can any of the company-specific risk be diversified away by investing in both CPR Gomu and Itthirit Nice 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 CPR Gomu and Itthirit Nice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPR Gomu Industrial and Itthirit Nice Corp, you can compare the effects of market volatilities on CPR Gomu and Itthirit Nice 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 CPR Gomu with a short position of Itthirit Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPR Gomu and Itthirit Nice.
Diversification Opportunities for CPR Gomu and Itthirit Nice
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CPR and Itthirit is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CPR Gomu Industrial and Itthirit Nice Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itthirit Nice Corp and CPR Gomu 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 CPR Gomu Industrial are associated (or correlated) with Itthirit Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itthirit Nice Corp has no effect on the direction of CPR Gomu i.e., CPR Gomu and Itthirit Nice go up and down completely randomly.
Pair Corralation between CPR Gomu and Itthirit Nice
Assuming the 90 days trading horizon CPR Gomu Industrial is expected to generate 1.24 times more return on investment than Itthirit Nice. However, CPR Gomu is 1.24 times more volatile than Itthirit Nice Corp. It trades about -0.22 of its potential returns per unit of risk. Itthirit Nice Corp is currently generating about -0.5 per unit of risk. If you would invest 349.00 in CPR Gomu Industrial on September 20, 2024 and sell it today you would lose (31.00) from holding CPR Gomu Industrial or give up 8.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPR Gomu Industrial vs. Itthirit Nice Corp
Performance |
| Timeline |
| CPR Gomu Industrial |
| Itthirit Nice Corp |
CPR Gomu and Itthirit Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPR Gomu and Itthirit Nice
The main advantage of trading using opposite CPR Gomu and Itthirit Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPR Gomu position performs unexpectedly, Itthirit Nice 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 Itthirit Nice will offset losses from the drop in Itthirit Nice's long position.| CPR Gomu vs. Salee Colour Public | CPR Gomu vs. Business Online PCL | CPR Gomu vs. Communication System Solution | CPR Gomu vs. CI Group Public |
| Itthirit Nice vs. Delta Electronics Public | Itthirit Nice vs. Delta Electronics Public | Itthirit Nice vs. Airports of Thailand | Itthirit Nice vs. Airports of Thailand |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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