Correlation Between Chukai Public and Peoples Garment
Can any of the company-specific risk be diversified away by investing in both Chukai Public and Peoples Garment 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 Peoples Garment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chukai Public and Peoples Garment Public, you can compare the effects of market volatilities on Chukai Public and Peoples Garment 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 Peoples Garment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chukai Public and Peoples Garment.
Diversification Opportunities for Chukai Public and Peoples Garment
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chukai and Peoples is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chukai Public and Peoples Garment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Garment Public 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 Peoples Garment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Garment Public has no effect on the direction of Chukai Public i.e., Chukai Public and Peoples Garment go up and down completely randomly.
Pair Corralation between Chukai Public and Peoples Garment
Assuming the 90 days trading horizon Chukai Public is expected to generate 1.16 times less return on investment than Peoples Garment. But when comparing it to its historical volatility, Chukai Public is 1.0 times less risky than Peoples Garment. It trades about 0.04 of its potential returns per unit of risk. Peoples Garment Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Peoples Garment Public on September 3, 2024 and sell it today you would earn a total of 165.00 from holding Peoples Garment Public or generate 22.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Chukai Public vs. Peoples Garment Public
Performance |
| Timeline |
| Chukai Public |
| Peoples Garment Public |
Chukai Public and Peoples Garment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chukai Public and Peoples Garment
The main advantage of trading using opposite Chukai Public and Peoples Garment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chukai Public position performs unexpectedly, Peoples Garment 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 Peoples Garment will offset losses from the drop in Peoples Garment's long position.| Chukai Public vs. Asia Aviation Public | Chukai Public vs. Bangkok Dusit Medical | Chukai Public vs. Bangkok Expressway and | Chukai Public vs. Airports of Thailand |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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