Correlation Between CENTRAL RETAIL and Bualuang Office
Can any of the company-specific risk be diversified away by investing in both CENTRAL RETAIL and Bualuang Office 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 CENTRAL RETAIL and Bualuang Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTRAL RETAIL P and Bualuang Office Leasehold, you can compare the effects of market volatilities on CENTRAL RETAIL and Bualuang Office 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 CENTRAL RETAIL with a short position of Bualuang Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTRAL RETAIL and Bualuang Office.
Diversification Opportunities for CENTRAL RETAIL and Bualuang Office
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CENTRAL and Bualuang is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CENTRAL RETAIL P and Bualuang Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bualuang Office Leasehold and CENTRAL RETAIL 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 CENTRAL RETAIL P are associated (or correlated) with Bualuang Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bualuang Office Leasehold has no effect on the direction of CENTRAL RETAIL i.e., CENTRAL RETAIL and Bualuang Office go up and down completely randomly.
Pair Corralation between CENTRAL RETAIL and Bualuang Office
Assuming the 90 days trading horizon CENTRAL RETAIL P is expected to under-perform the Bualuang Office. In addition to that, CENTRAL RETAIL is 1.13 times more volatile than Bualuang Office Leasehold. It trades about -0.13 of its total potential returns per unit of risk. Bualuang Office Leasehold is currently generating about 0.14 per unit of volatility. If you would invest 411.00 in Bualuang Office Leasehold on September 3, 2024 and sell it today you would earn a total of 59.00 from holding Bualuang Office Leasehold or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTRAL RETAIL P vs. Bualuang Office Leasehold
Performance |
| Timeline |
| CENTRAL RETAIL P |
| Bualuang Office Leasehold |
CENTRAL RETAIL and Bualuang Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTRAL RETAIL and Bualuang Office
The main advantage of trading using opposite CENTRAL RETAIL and Bualuang Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTRAL RETAIL position performs unexpectedly, Bualuang Office 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 Bualuang Office will offset losses from the drop in Bualuang Office's long position.| CENTRAL RETAIL vs. Central Retail | CENTRAL RETAIL vs. The Erawan Group | CENTRAL RETAIL vs. Autocorp Holding Public | CENTRAL RETAIL vs. XSpring Capital Public |
| Bualuang Office vs. Grande Hospitality Real | Bualuang Office vs. BA Airport Leasehold | Bualuang Office vs. CENTRAL RETAIL P | Bualuang Office vs. WHA Industrial Leasehold |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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