Correlation Between Erawan and INET Leasehold
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By analyzing existing cross correlation between The Erawan Group and INET Leasehold REIT, you can compare the effects of market volatilities on Erawan and INET Leasehold 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 INET Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and INET Leasehold.
Diversification Opportunities for Erawan and INET Leasehold
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Erawan and INET is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and INET Leasehold REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INET Leasehold REIT 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 INET Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INET Leasehold REIT has no effect on the direction of Erawan i.e., Erawan and INET Leasehold go up and down completely randomly.
Pair Corralation between Erawan and INET Leasehold
Assuming the 90 days trading horizon The Erawan Group is expected to under-perform the INET Leasehold. In addition to that, Erawan is 5.93 times more volatile than INET Leasehold REIT. It trades about -0.27 of its total potential returns per unit of risk. INET Leasehold REIT is currently generating about 0.0 per unit of volatility. If you would invest 845.00 in INET Leasehold REIT on October 22, 2024 and sell it today you would earn a total of 0.00 from holding INET Leasehold REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. INET Leasehold REIT
Performance |
| Timeline |
| Erawan Group |
| INET Leasehold REIT |
Erawan and INET Leasehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and INET Leasehold
The main advantage of trading using opposite Erawan and INET Leasehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, INET Leasehold 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 INET Leasehold will offset losses from the drop in INET Leasehold's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| INET Leasehold vs. CPN Commercial Growth | INET Leasehold vs. HEMARAJ INDUSTRIAL PROPERTY | INET Leasehold vs. Future Park Leasehold | INET Leasehold 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.
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