Correlation Between Erawan and CENTRAL RETAIL
Can any of the company-specific risk be diversified away by investing in both Erawan and CENTRAL RETAIL 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 Erawan and CENTRAL RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Erawan Group and CENTRAL RETAIL P, you can compare the effects of market volatilities on Erawan and CENTRAL RETAIL 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 CENTRAL RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and CENTRAL RETAIL.
Diversification Opportunities for Erawan and CENTRAL RETAIL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Erawan and CENTRAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and CENTRAL RETAIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL RETAIL P 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 CENTRAL RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL RETAIL P has no effect on the direction of Erawan i.e., Erawan and CENTRAL RETAIL go up and down completely randomly.
Pair Corralation between Erawan and CENTRAL RETAIL
Assuming the 90 days trading horizon The Erawan Group is expected to generate 68.26 times more return on investment than CENTRAL RETAIL. However, Erawan is 68.26 times more volatile than CENTRAL RETAIL P. It trades about 0.13 of its potential returns per unit of risk. CENTRAL RETAIL P is currently generating about -0.13 per unit of risk. If you would invest 0.00 in The Erawan Group on September 3, 2024 and sell it today you would earn a total of 400.00 from holding The Erawan Group or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. CENTRAL RETAIL P
Performance |
| Timeline |
| Erawan Group |
| CENTRAL RETAIL P |
Erawan and CENTRAL RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and CENTRAL RETAIL
The main advantage of trading using opposite Erawan and CENTRAL RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, CENTRAL RETAIL 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 CENTRAL RETAIL will offset losses from the drop in CENTRAL RETAIL's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| CENTRAL RETAIL vs. Central Retail | CENTRAL RETAIL vs. The Erawan Group | CENTRAL RETAIL vs. Autocorp Holding Public | CENTRAL RETAIL vs. XSpring Capital 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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