Correlation Between Erawan and Filter Vision
Can any of the company-specific risk be diversified away by investing in both Erawan and Filter Vision 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 Filter Vision 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 Filter Vision Public, you can compare the effects of market volatilities on Erawan and Filter Vision 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 Filter Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and Filter Vision.
Diversification Opportunities for Erawan and Filter Vision
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Erawan and Filter is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and Filter Vision Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filter Vision Public 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 Filter Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filter Vision Public has no effect on the direction of Erawan i.e., Erawan and Filter Vision go up and down completely randomly.
Pair Corralation between Erawan and Filter Vision
Assuming the 90 days trading horizon The Erawan Group is expected to generate 33.46 times more return on investment than Filter Vision. However, Erawan is 33.46 times more volatile than Filter Vision Public. It trades about 0.06 of its potential returns per unit of risk. Filter Vision Public is currently generating about -0.03 per unit of risk. If you would invest 503.00 in The Erawan Group on September 3, 2024 and sell it today you would lose (103.00) from holding The Erawan Group or give up 20.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. Filter Vision Public
Performance |
| Timeline |
| Erawan Group |
| Filter Vision Public |
Erawan and Filter Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and Filter Vision
The main advantage of trading using opposite Erawan and Filter Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, Filter Vision 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 Filter Vision will offset losses from the drop in Filter Vision's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| Filter Vision vs. G Capital Public | Filter Vision vs. Cho Thavee Public | Filter Vision vs. E for L | Filter Vision vs. East Coast Furnitech |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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