Correlation Between Energy Absolute and Lohakit Metal
Can any of the company-specific risk be diversified away by investing in both Energy Absolute and Lohakit Metal 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 Energy Absolute and Lohakit Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Absolute Public and Lohakit Metal Public, you can compare the effects of market volatilities on Energy Absolute and Lohakit Metal 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 Energy Absolute with a short position of Lohakit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Absolute and Lohakit Metal.
Diversification Opportunities for Energy Absolute and Lohakit Metal
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Energy and Lohakit is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Energy Absolute Public and Lohakit Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohakit Metal Public and Energy Absolute 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 Energy Absolute Public are associated (or correlated) with Lohakit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohakit Metal Public has no effect on the direction of Energy Absolute i.e., Energy Absolute and Lohakit Metal go up and down completely randomly.
Pair Corralation between Energy Absolute and Lohakit Metal
Assuming the 90 days horizon Energy Absolute Public is expected to under-perform the Lohakit Metal. In addition to that, Energy Absolute is 4.52 times more volatile than Lohakit Metal Public. It trades about -0.09 of its total potential returns per unit of risk. Lohakit Metal Public is currently generating about -0.02 per unit of volatility. If you would invest 437.00 in Lohakit Metal Public on September 2, 2024 and sell it today you would lose (61.00) from holding Lohakit Metal Public or give up 13.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Energy Absolute Public vs. Lohakit Metal Public
Performance |
| Timeline |
| Energy Absolute Public |
| Lohakit Metal Public |
Energy Absolute and Lohakit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Absolute and Lohakit Metal
The main advantage of trading using opposite Energy Absolute and Lohakit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Absolute position performs unexpectedly, Lohakit Metal 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 Lohakit Metal will offset losses from the drop in Lohakit Metal's long position.| Energy Absolute vs. Gulf Energy Development | Energy Absolute vs. Global Power Synergy | Energy Absolute vs. CP ALL Public | Energy Absolute vs. Bangkok Dusit Medical |
| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. Bangkok Expressway and |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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