Correlation Between Erawan and Grande Hospitality
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Erawan Group and Grande Hospitality Real, you can compare the effects of market volatilities on Erawan and Grande Hospitality 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 Grande Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and Grande Hospitality.
Diversification Opportunities for Erawan and Grande Hospitality
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Erawan and Grande is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and Grande Hospitality Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Hospitality Real 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 Grande Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Hospitality Real has no effect on the direction of Erawan i.e., Erawan and Grande Hospitality go up and down completely randomly.
Pair Corralation between Erawan and Grande Hospitality
Assuming the 90 days trading horizon The Erawan Group is expected to generate 1.87 times more return on investment than Grande Hospitality. However, Erawan is 1.87 times more volatile than Grande Hospitality Real. It trades about 0.11 of its potential returns per unit of risk. Grande Hospitality Real is currently generating about 0.13 per unit of risk. If you would invest 382.00 in The Erawan Group on August 29, 2024 and sell it today you would earn a total of 18.00 from holding The Erawan Group or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. Grande Hospitality Real
Performance |
| Timeline |
| Erawan Group |
| Grande Hospitality Real |
Erawan and Grande Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and Grande Hospitality
The main advantage of trading using opposite Erawan and Grande Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, Grande Hospitality 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 Grande Hospitality will offset losses from the drop in Grande Hospitality's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| Grande Hospitality vs. Quality Houses Hotel | Grande Hospitality vs. Quality Houses Property | Grande Hospitality vs. CK Power Public | Grande Hospitality vs. Thai Metal Drum |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |