Correlation Between Eastern Commercial and Chumporn Palm
Can any of the company-specific risk be diversified away by investing in both Eastern Commercial and Chumporn Palm 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 Eastern Commercial and Chumporn Palm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Commercial Leasing and Chumporn Palm Oil, you can compare the effects of market volatilities on Eastern Commercial and Chumporn Palm 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 Eastern Commercial with a short position of Chumporn Palm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Commercial and Chumporn Palm.
Diversification Opportunities for Eastern Commercial and Chumporn Palm
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastern and Chumporn is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Commercial Leasing and Chumporn Palm Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chumporn Palm Oil and Eastern Commercial 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 Eastern Commercial Leasing are associated (or correlated) with Chumporn Palm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chumporn Palm Oil has no effect on the direction of Eastern Commercial i.e., Eastern Commercial and Chumporn Palm go up and down completely randomly.
Pair Corralation between Eastern Commercial and Chumporn Palm
Assuming the 90 days trading horizon Eastern Commercial Leasing is expected to under-perform the Chumporn Palm. In addition to that, Eastern Commercial is 3.41 times more volatile than Chumporn Palm Oil. It trades about -0.31 of its total potential returns per unit of risk. Chumporn Palm Oil is currently generating about 0.0 per unit of volatility. If you would invest 284.00 in Chumporn Palm Oil on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Chumporn Palm Oil or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Commercial Leasing vs. Chumporn Palm Oil
Performance |
| Timeline |
| Eastern Commercial |
| Chumporn Palm Oil |
Eastern Commercial and Chumporn Palm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Commercial and Chumporn Palm
The main advantage of trading using opposite Eastern Commercial and Chumporn Palm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Commercial position performs unexpectedly, Chumporn Palm 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 Chumporn Palm will offset losses from the drop in Chumporn Palm's long position.| Eastern Commercial vs. Chai Watana Tannery | Eastern Commercial vs. EMC Public | Eastern Commercial vs. Asia Plus Group | Eastern Commercial vs. Globlex Holding Management |
| Chumporn Palm vs. Univanich Palm Oil | Chumporn Palm vs. Chiangmai Frozen Foods | Chumporn Palm vs. Dynasty Ceramic Public | Chumporn Palm vs. GFPT 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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