Correlation Between CPR Gomu and Thitikorn Public
Can any of the company-specific risk be diversified away by investing in both CPR Gomu and Thitikorn Public 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 Thitikorn Public 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 Thitikorn Public, you can compare the effects of market volatilities on CPR Gomu and Thitikorn Public 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 Thitikorn Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPR Gomu and Thitikorn Public.
Diversification Opportunities for CPR Gomu and Thitikorn Public
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CPR and Thitikorn is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding CPR Gomu Industrial and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn Public 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 Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of CPR Gomu i.e., CPR Gomu and Thitikorn Public go up and down completely randomly.
Pair Corralation between CPR Gomu and Thitikorn Public
Assuming the 90 days trading horizon CPR Gomu is expected to generate 100.95 times less return on investment than Thitikorn Public. But when comparing it to its historical volatility, CPR Gomu Industrial is 30.03 times less risky than Thitikorn Public. It trades about 0.02 of its potential returns per unit of risk. Thitikorn Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 460.00 in Thitikorn Public on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Thitikorn Public or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPR Gomu Industrial vs. Thitikorn Public
Performance |
| Timeline |
| CPR Gomu Industrial |
| Thitikorn Public |
CPR Gomu and Thitikorn Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPR Gomu and Thitikorn Public
The main advantage of trading using opposite CPR Gomu and Thitikorn Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPR Gomu position performs unexpectedly, Thitikorn Public 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 Thitikorn Public will offset losses from the drop in Thitikorn Public'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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