Correlation Between CENTRAL RETAIL and Golden Ventures
Can any of the company-specific risk be diversified away by investing in both CENTRAL RETAIL and Golden Ventures 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 Golden Ventures 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 Golden Ventures Leasehold, you can compare the effects of market volatilities on CENTRAL RETAIL and Golden Ventures 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 Golden Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTRAL RETAIL and Golden Ventures.
Diversification Opportunities for CENTRAL RETAIL and Golden Ventures
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between CENTRAL and Golden is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding CENTRAL RETAIL P and Golden Ventures Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ventures 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 Golden Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ventures Leasehold has no effect on the direction of CENTRAL RETAIL i.e., CENTRAL RETAIL and Golden Ventures go up and down completely randomly.
Pair Corralation between CENTRAL RETAIL and Golden Ventures
Assuming the 90 days trading horizon CENTRAL RETAIL P is expected to under-perform the Golden Ventures. In addition to that, CENTRAL RETAIL is 1.8 times more volatile than Golden Ventures Leasehold. It trades about -0.21 of its total potential returns per unit of risk. Golden Ventures Leasehold is currently generating about 0.05 per unit of volatility. If you would invest 675.00 in Golden Ventures Leasehold on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Golden Ventures Leasehold or generate 1.48% 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. Golden Ventures Leasehold
Performance |
| Timeline |
| CENTRAL RETAIL P |
| Golden Ventures Leasehold |
CENTRAL RETAIL and Golden Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTRAL RETAIL and Golden Ventures
The main advantage of trading using opposite CENTRAL RETAIL and Golden Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTRAL RETAIL position performs unexpectedly, Golden Ventures 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 Golden Ventures will offset losses from the drop in Golden Ventures' long position.| CENTRAL RETAIL vs. Somboon Advance Technology | CENTRAL RETAIL vs. Thai Coating Industrial | CENTRAL RETAIL vs. PINTHONG INDUSTRIAL PARK | CENTRAL RETAIL vs. AIM Industrial Growth |
| Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. CPN Retail Growth | Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. LH Shopping Centers |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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