Correlation Between E For and Cho Thavee
Can any of the company-specific risk be diversified away by investing in both E For and Cho Thavee 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 E For and Cho Thavee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E for L and Cho Thavee Public, you can compare the effects of market volatilities on E For and Cho Thavee 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 E For with a short position of Cho Thavee. Check out your portfolio center. Please also check ongoing floating volatility patterns of E For and Cho Thavee.
Diversification Opportunities for E For and Cho Thavee
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EFORL and Cho is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding E for L and Cho Thavee Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Thavee Public and E For 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 E for L are associated (or correlated) with Cho Thavee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Thavee Public has no effect on the direction of E For i.e., E For and Cho Thavee go up and down completely randomly.
Pair Corralation between E For and Cho Thavee
Assuming the 90 days trading horizon E for L is expected to generate 0.75 times more return on investment than Cho Thavee. However, E for L is 1.33 times less risky than Cho Thavee. It trades about 0.47 of its potential returns per unit of risk. Cho Thavee Public is currently generating about -0.03 per unit of risk. If you would invest 13.00 in E for L on August 29, 2024 and sell it today you would earn a total of 16.00 from holding E for L or generate 123.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E for L vs. Cho Thavee Public
Performance |
| Timeline |
| E for L |
| Cho Thavee Public |
E For and Cho Thavee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E For and Cho Thavee
The main advantage of trading using opposite E For and Cho Thavee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E For position performs unexpectedly, Cho Thavee 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 Cho Thavee will offset losses from the drop in Cho Thavee's long position.| E For vs. East Coast Furnitech | E For vs. Forth Smart Service | E For vs. Filter Vision Public | E For vs. ARIP Public |
| Cho Thavee vs. PTT Oil and | Cho Thavee vs. Pico Public | Cho Thavee vs. Pioneer Motor Public | Cho Thavee vs. The Erawan Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |