Correlation Between Dcon Products and GFPT Public
Can any of the company-specific risk be diversified away by investing in both Dcon Products and GFPT 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 Dcon Products and GFPT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dcon Products Public and GFPT Public, you can compare the effects of market volatilities on Dcon Products and GFPT 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 Dcon Products with a short position of GFPT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dcon Products and GFPT Public.
Diversification Opportunities for Dcon Products and GFPT Public
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dcon and GFPT is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dcon Products Public and GFPT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFPT Public and Dcon Products 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 Dcon Products Public are associated (or correlated) with GFPT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFPT Public has no effect on the direction of Dcon Products i.e., Dcon Products and GFPT Public go up and down completely randomly.
Pair Corralation between Dcon Products and GFPT Public
Assuming the 90 days trading horizon Dcon Products Public is expected to generate 1.45 times more return on investment than GFPT Public. However, Dcon Products is 1.45 times more volatile than GFPT Public. It trades about 0.08 of its potential returns per unit of risk. GFPT Public is currently generating about -0.02 per unit of risk. If you would invest 30.00 in Dcon Products Public on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Dcon Products Public or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dcon Products Public vs. GFPT Public
Performance |
| Timeline |
| Dcon Products Public |
| GFPT Public |
Dcon Products and GFPT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dcon Products and GFPT Public
The main advantage of trading using opposite Dcon Products and GFPT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dcon Products position performs unexpectedly, GFPT 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 GFPT Public will offset losses from the drop in GFPT Public's long position.| Dcon Products vs. Thantawan Industry Public | Dcon Products vs. The Erawan Group | Dcon Products vs. Jay Mart Public | Dcon Products 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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