Correlation Between CPR Gomu and Thai Coating
Can any of the company-specific risk be diversified away by investing in both CPR Gomu and Thai Coating 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 Thai Coating 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 Thai Coating Industrial, you can compare the effects of market volatilities on CPR Gomu and Thai Coating 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 Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPR Gomu and Thai Coating.
Diversification Opportunities for CPR Gomu and Thai Coating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CPR and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CPR Gomu Industrial and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial 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 Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of CPR Gomu i.e., CPR Gomu and Thai Coating go up and down completely randomly.
Pair Corralation between CPR Gomu and Thai Coating
Assuming the 90 days trading horizon CPR Gomu Industrial is expected to generate 0.51 times more return on investment than Thai Coating. However, CPR Gomu Industrial is 1.96 times less risky than Thai Coating. It trades about 0.22 of its potential returns per unit of risk. Thai Coating Industrial is currently generating about 0.04 per unit of risk. If you would invest 289.00 in CPR Gomu Industrial on September 14, 2024 and sell it today you would earn a total of 55.00 from holding CPR Gomu Industrial or generate 19.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPR Gomu Industrial vs. Thai Coating Industrial
Performance |
| Timeline |
| CPR Gomu Industrial |
| Thai Coating Industrial |
CPR Gomu and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPR Gomu and Thai Coating
The main advantage of trading using opposite CPR Gomu and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPR Gomu position performs unexpectedly, Thai Coating 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 Thai Coating will offset losses from the drop in Thai Coating'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 |
| Thai Coating vs. Thantawan Industry Public | Thai Coating vs. The Erawan Group | Thai Coating vs. Jay Mart Public | Thai Coating 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |