Correlation Between Erawan and B GRIMM
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By analyzing existing cross correlation between The Erawan Group and B GRIMM POWER, you can compare the effects of market volatilities on Erawan and B GRIMM 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 Erawan with a short position of B GRIMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and B GRIMM.
Diversification Opportunities for Erawan and B GRIMM
Significant diversification
The 3 months correlation between Erawan and BGRIM-R is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and B GRIMM POWER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B GRIMM POWER and Erawan 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 The Erawan Group are associated (or correlated) with B GRIMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B GRIMM POWER has no effect on the direction of Erawan i.e., Erawan and B GRIMM go up and down completely randomly.
Pair Corralation between Erawan and B GRIMM
Assuming the 90 days trading horizon The Erawan Group is expected to generate 18.03 times more return on investment than B GRIMM. However, Erawan is 18.03 times more volatile than B GRIMM POWER. It trades about 0.06 of its potential returns per unit of risk. B GRIMM POWER is currently generating about -0.04 per unit of risk. If you would invest 498.00 in The Erawan Group on September 14, 2024 and sell it today you would lose (98.00) from holding The Erawan Group or give up 19.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. B GRIMM POWER
Performance |
| Timeline |
| Erawan Group |
| B GRIMM POWER |
Erawan and B GRIMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and B GRIMM
The main advantage of trading using opposite Erawan and B GRIMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, B GRIMM 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 B GRIMM will offset losses from the drop in B GRIMM's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| B GRIMM vs. BGrimm Power Public | B GRIMM vs. Bangkok Dusit Medical | B GRIMM vs. Electricity Generating Public | B GRIMM 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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