Correlation Between Chukai Public and CSP Steel
Can any of the company-specific risk be diversified away by investing in both Chukai Public and CSP Steel 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 Chukai Public and CSP Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chukai Public and CSP Steel Center, you can compare the effects of market volatilities on Chukai Public and CSP Steel 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 Chukai Public with a short position of CSP Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chukai Public and CSP Steel.
Diversification Opportunities for Chukai Public and CSP Steel
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chukai and CSP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Chukai Public and CSP Steel Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Steel Center and Chukai Public 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 Chukai Public are associated (or correlated) with CSP Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Steel Center has no effect on the direction of Chukai Public i.e., Chukai Public and CSP Steel go up and down completely randomly.
Pair Corralation between Chukai Public and CSP Steel
Assuming the 90 days trading horizon Chukai Public is expected to under-perform the CSP Steel. In addition to that, Chukai Public is 2.62 times more volatile than CSP Steel Center. It trades about -0.05 of its total potential returns per unit of risk. CSP Steel Center is currently generating about -0.01 per unit of volatility. If you would invest 57.00 in CSP Steel Center on October 26, 2024 and sell it today you would lose (1.00) from holding CSP Steel Center or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chukai Public vs. CSP Steel Center
Performance |
| Timeline |
| Chukai Public |
| CSP Steel Center |
Chukai Public and CSP Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chukai Public and CSP Steel
The main advantage of trading using opposite Chukai Public and CSP Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chukai Public position performs unexpectedly, CSP Steel 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 CSP Steel will offset losses from the drop in CSP Steel's long position.| Chukai Public vs. Synnex Public | Chukai Public vs. SiS Distribution Public | Chukai Public vs. Thoresen Thai Agencies | Chukai Public vs. SVI Public |
| CSP Steel vs. Thai Metal Drum | CSP Steel vs. Thantawan Industry Public | CSP Steel vs. Univanich Palm Oil | CSP Steel vs. Union Plastic 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| 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 | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |