Correlation Between Energy Absolute and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both Energy Absolute and Rojana Industrial 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 Rojana Industrial 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 Rojana Industrial Park, you can compare the effects of market volatilities on Energy Absolute and Rojana Industrial 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 Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Absolute and Rojana Industrial.
Diversification Opportunities for Energy Absolute and Rojana Industrial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Energy and Rojana is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Energy Absolute Public and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park 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 Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of Energy Absolute i.e., Energy Absolute and Rojana Industrial go up and down completely randomly.
Pair Corralation between Energy Absolute and Rojana Industrial
Assuming the 90 days horizon Energy Absolute Public is expected to under-perform the Rojana Industrial. In addition to that, Energy Absolute is 2.84 times more volatile than Rojana Industrial Park. It trades about -0.09 of its total potential returns per unit of risk. Rojana Industrial Park is currently generating about 0.03 per unit of volatility. If you would invest 576.00 in Rojana Industrial Park on September 2, 2024 and sell it today you would earn a total of 54.00 from holding Rojana Industrial Park or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Energy Absolute Public vs. Rojana Industrial Park
Performance |
| Timeline |
| Energy Absolute Public |
| Rojana Industrial Park |
Energy Absolute and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Absolute and Rojana Industrial
The main advantage of trading using opposite Energy Absolute and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Absolute position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial'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 |
| Rojana Industrial vs. Energy Absolute Public | Rojana Industrial vs. CP ALL Public | Rojana Industrial vs. PTT Public |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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